NPS tax Benefit

As per the amendment made by Union Budget 2015 in tax provisions for FY 2015-16, if any customer contributes voluntarily towards the NPS system, then he would get an additional benefit of ₹ 50,000 under section 80CCD (1B) which would be over and above the ceiling limit of ₹ 1,50,000 as prescribed under section 80 CCE.

How to make a payment

You need to login to Internet Banking to make the contribution to NPS before the end of the following month. As a confirmation of contribution to the NPS account, you will get an e-mail as well as an SMS alert on your registered e-mail ID and mobile number. Thereafter, payment can be made to the NPS account any time of the year.

The process to make the payment is as below:

• Login to ICICIBank.com.
• Click on Payments & Transfer > Manage Biller > Register Biller.
• Enter NPS in the Biller name field and click on ‘Search’.
• Click on ‘Register’, below the Available Biller Section.
• Enter the PRAN received and DOB as available on ICICI Bank records & click on Next.
• Preview the details filled and click on ‘Submit’.
• The biller is successfully registered and the payment can be made after 3 working days.
• To make the payment, click on Payments & Transfer> Bill Payments > Registered Billers.
• Once the initial payment is made, subsequent payments can be made any time of the year.

Please do not make the payment before 3 working days or the same will be reversed to your Savings Account.

An annual statement for the NPS account will be issued by the Central Recordkeeping Agency (CRA). Customers can also view/ print statements by logging into the NPS app or the CRA website.

How to withdraw

A. Upon attainment of the age of 60 years:

• At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber. Howesver, the subscriber has the option to defer the lump sum withdrawal till the age of 75 years.
• In case of attainment of 60 years, exit before the age of Superannuation/attainment of 60 years, the subscribers can also initiate withdrawal requests in the CRA system, which shall subsequently have to be verified by the Nodal Office (POP/Banks) in CRA system. www.cra-nsdl.com

B. At any time before attaining the age of 60/75 years:

• At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and the balance is paid as a lump sum payment to the subscriber.

C. Death of the subscriber:

• The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.
• Under NPS, PFRDA has entrusted the responsibility of receiving, processing and settlement of all withdrawal claims made to CRA and has created a special NPS Claim Processing Cell (“NPSCPC”) for this purpose for handling all types of withdrawal claims.
• The Withdrawal process is now online.
• NPS offers Indian citizens a low cost option for planning their retirement. Each intermediary is entitled to recover the following prescribed charges from the subscriber towards the services rendered by them: