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
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 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.
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.
Kindly keep the below information and documents ready
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