Posted by: Girija Gadre, Arti Bhargava and Labdhi Mehta on Feb 27, 2017, 06.07 PM IST
Subscribers of the National Pension System (NPS) are able to claim an additional deduction of up to Rs. 50,000 for contribution to NPS, over and above the tax deduction of Rs. 1,50,000 available to assessees under Section 80C. One need not be a government employee to join the NPS. Any citizen of India between the age of 18 to 60 years can become NPS subscribers.
PRAN A Permanent Retirement Account Number (PRAN) is a prerequisite for NPS. Forms for PRAN application can be procured from any point of presence service providers (POP-SP) under NPS or can be downloaded from the website https://www.npscra.nsdl.co.in/.
Details and documents Applicant details, bank details and scheme preference details must be filled in the application form. Photograph, address and ID proof for KYC must be attached with the application form.
Submission Duly filled and signed form with documents must be submitted at the POPSP office. Once the documents are verified and processed, a PRAN is generated and sent to the subscriber's correspondence address.
Contribution At the time of submission of form, first contribution of minimum Rs. 500 is required to be made to the POP-SP. A contribution slip (NCIS) must be filled with the payment instrument particulars to accompany the payment.