Subscribers of the National Pension System (NPS) can open Tier I (for Pension) and Tier II (for Investments) accounts to create a retirement corpus. NPS provides tax benefits under section 80CCD(1) up to Rs 1.5 lakh and under section 80CC(IB) up to Rs 50,000 (over and above 80C benefit). One can make NPS contributions in the following way.
e-NPS
To make an online contribution, the subscriber can to go to https://enps. nsdl.com and click on the ‘Contribution’ tab. The subscriber’s PRAN (permanent retirement account number) and date of birth need to be entered. Upon OTP verifi cation, the contribution to a Tier I or Tier II account can be made.
Mobile application
Download the NPS mobile app. The contribution can be made even without logging in to the app by just entering the PRAN, and date of birth and then clicking on ‘verify PRAN’. After OTP authentication, the subscriber can make contribution in Tier I or Tier II account through net banking, debit or credit card.
Nodal office
For carrying out transactions physically, one can visit the POP-SP location. One can download the NPS contribution slip from http://bit.ly/2ICLtax and submit it to the POP-SP after fi lling it. An acknowledgment is issued to enable tracking of the contribution.
Charges
A POP service charge of 0.1% of the contribution will be applicable (between Rs 10 and Rs 10,000). In the case of subscribers registered in e-NPS through Aadhaar, no charges are applicable for future contributions.
Points to not
- Contributions through eNPS are credited to the subscriber’s NPS account on T+2 basis.
- Minimum contribution amount is Rs 500 for Tier I account and Rs 250 for Tier II account.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
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