Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Monday, March 28, 2016

Tax Benefit up to Rs.15000/- on Investment of Rs.50000 In NPS from Asst Year 16-17

 This year Tax benefit on additional Investment of Rs.50000/- in NPS Scheme is allowed from Assessment Year 2016-17. So every assesse ( tax payer ) wants to avail this additional tax benefit. Every assesse on the basis of income can save Tax Saving ranging from Rs5000/- to Rs.15000/-  if one is between the age of 18 years to 60 years.
Method of opening NPS A/c
1.  Offline Process
2. Online Process
1.  Offline Process
*Find Point of presence. POPs are intermediaries (such as banks) which help to  subscribe to NPS, carry out KYC verification and also receive NPS contributions from subscriber. The list of POPs is available on
* Fill up subscriber registration form to open the A/c which is available on
* Submit all KYC documents ( not in the case if A/c is opened through banks) & make contribution.
Minimum contribution : Rs.500 aggregating to Rs.6000/-  Investment per annum
* A permanent retirement account number (PRAN) is generated and sent. This is a unique portable number that will remain with subscriber under NPS.
*  Welcome kit also contains various passwords, which you can be used to access the account through the call centre or online on the Central Record-keeping Agency (CRA) website.
* PoPs get paid from the contributions which the subscriber makes.
One-time charge (subscriber registration charge) for account opening : Rs.125
Then charge of 0.25% of the amount received from the subscriber on all transactions subject to a minimum of Rs.20/-  and maximum of Rs.25,000/-Charge of Rs.20 per transaction on Non-financial transactions or those that do not involve a contribution from the subscriber
2.  Online Process
* Open online account by going to and then going to E-nps.

* There are two ways of register, One is using PAN and bank account details and the other is using Aadhaar.

* The process of registration is the same as the offline process in terms of the information needed, but if subscriber provides PAN, the subscriber will also need to give a bank account which the authorities can tap for their KYC.

* The subscriber can avail the PAN plus bank verified-KYC to open the account online only if it has a bank account with any of bank which are empanelled by PFRDA

* In this process, the subscriber needs to contribute at the time of registration and any subsequent transaction is possible after the KYC details have been verified by the bank. For KYC, banks will charge  a one-time fee of up to Rs.125 (plus applicable taxes) and this will be debited from bank account by the bank as KYC authentication charges.

* If start by keying in the Aadhaar number
            A one-time password (OTP) will be sent to the Aadhaar - registered mobile phone            number.
            OTP is verified
            Fill up information such as bank details, and also make an initial payment

* While opening an A/c, the subscriber needs to scan and upload a digital signature and also a photograph. . If the subscriber is using Aadhaar, then a photograph appears automatically, which can be changed with another one.

* To make a contribution, the subscriber has the option to invest online under E-NPS.
No POPs charges but Payment Gateway Charges will be apply which can be high for Debit card & Credit transaction. For Net Banking Facilities, it is just 60 paise.

* Print the NPS form that was filled online, paste a photograph, sign the form and submit the print out within 90 days to the CRA. Currently, National Securities Depository Ltd (NSDL) is the CRA. . If the subscriber does not send the form, his account will be ‘frozen’ temporarily.

* If the subscriber has already account then he can make use of the e-NPS facility to contribute online

* Such contributions can only happen through e-NPS, else it’s via NEFT, cheque, among other payment options.

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