Corporate NPS
Corporate NPS
- Equal contribution by employer and employee
- Un-equal contribution by employer and employee
- Contribution by employee only
- Contribution by employer only
- Entities registered under the Companies Act, 2013 or a cooperative society registered under any law relating to Co-operative societies
- Bodies established or incorporated under any act of Parliament or any law enacted by a State legislature or under any order/notification issued by the Central / State Government
- Public Sector Enterprises or any Government companyRegistered Partnership Firms
- Limited Liability Partnerships (LLPs)
- Proprietary Concerns
- Trusts / Society
- Foreign companies having registration u/s 591-608 of Companies Act 1956 in respect of their eligible Indian employee(s)
- Foreign / diplomatic missions operating in India (Embassy/High Commission/Consulate etc.) in respect of their eligible Indian employee(s)
- International Organizations operating in India (UN / WHO / World Bank / ADB / IMF etc.) in respect of their eligible Indian employee(s)
Eligibility criteria for Corporate subscribers
Employer registered under NPS Corporate
Any employee who is an Indian citizen (including NRIs and OCIs)
Aged between 18 and 70 years
KYC Compliant
Why Corporate should join NPS?
Secure employees' future and give them financial freedom post-retirement
Exclusive tax benefit on investments for employees
Risk spread across asset classes
Portability across jobs and locations
Withdrawals for emergencies
Tax-free withdrawals on exit
Tax Benefits For Employees
NPS offers tax benefit on both Employer and Employee contribution
Employer Contributions
Employer contribution of up to 10% of Salary (Basic and DA) towards NPS is eligible for tax deduction under section 80CCD(2) to the extent of ₹7.5 lakh* in the Old Tax Regime.
Employer contribution of up to 14% of Salary (Basic and DA) towards NPS is eligible for tax deduction under section 80CCD(2) to the extent of ₹7.5 lakh* in the New Tax Regime.
* Kindly note the limit of ₹7.5 lakh is cumulative of Employer contribution to EPF, Superannuation and NPS. Further, the benefit available under section 80CCD(2) can be availed in both the tax regimes i.e., old and new.
Employee Contribution
Employee can invest up to 10% of Salary (Basic and DA) and avail tax deduction under Section 80CCD(1). This benefit is part of ₹1.5 lakh limit of Section 80CCE
Employee can additionally invest ₹50,000/- and avail tax deduction under Section 80CCD(1B). This benefit is over and above ₹1.5 lakh limit of Section 80CCE
Kindly note the benefit available under section 80CCD(1) and 80CCD(1B) can be availed in old tax regime only.
Withdrawal and Exit
Partial Withdrawals: Up to 25% of self-contributed amount allowed as partial withdrawal for pre-defined emergencies, shall be tax-exempt. Kindly note that employer contribution amount shall not be considered for partial withdrawals.
Withdrawals on premature exit: Up to 20% of accumulated corpus eligible for withdrawal upon premature exit shall be tax-exempt.
Withdrawals upon attaining Superannuation or exit on maturity: Entire corpus amount is tax-free. Maximum 60% allowed as withdrawal with remaining 40% to be invested in annuity for receiving your pension.
Annuity Investment: There is no GST applicable on NPS corpus that is invested in Annuity plan provided by PFRDA-approved insurance companies, for receiving a pension.
How to Join?
- Click Open NPS Account, select the CRA with whom your employer & PoP has partnered and select “Corporate Subscriber” OR click on the link provided by your employer
- Fill out the registration form online and upload the documents.
- This will generate PRAN number (Permanent Retirement Account Number) which is unique, that is, an individual can have only one PRAN.
- After a day, the subscriber gets a Login ID to his account held by the CRA. Using this login ID, subscriber can view all details and history of his account.
- Once the online form is submitted, please follow up with Corporate HR/ Nodal officer for Employer verification and NPS account activation
Kindly keep the below information and documents ready
- Mobile-linked Aadhaar Card or DigiLocker
- Bank account details (account number, IFS Code, and bank name; ensure that the bank account is in name of the individual registering for NPS)
- scanned copy of cancelled cheque or bank passbook
- Scanned copies of your PAN Card and your signature
Kindly note no initial payment required to open NPS account as Corporate subscriber since account opening charges shall be recovered from the first contribution deposited by the Employer.
For any queries, please write to nps[at]sbipensionfunds[dot]co[dot]in
Pension Projector