The National Pension System (NPS) is a voluntary, defined-contribution retirement savings plan that allows members to save regularly throughout their working lives to make the best decisions for their future. It was sent off with a plan to give benefits advantages to people during retirement years. The government has provided tax breaks for income.
Under the Income Tax Act of 1961, Section 80CCD(1B), a person can claim a Rs 50,000 deduction. This goes above and beyond the Rs 1.5 lakh deduction that is allowed in a financial year under Section 80C.In addition, the individual is eligible for a Section 80CCD deduction if her employer contributes to her NPS account.
Presently, the Pension Fund Regulatory and Development Authority (PFRDA) has commanded three focal record keeping organizations (CRAs) for opening of NPS records of supporters. KFintech, NSDL, and CAMS are these.
The procedure that KFintech used to open an account is mentioned in order to provide a step-by-step explanation of the account opening process. However, opening an NPS account with other CRAs is essentially the same process.
Keep in mind that no one can have more than one NPS account. Therefore, you can’t open another account with a different CRA after opening one.
How to open an online NPS account:
Step 1:Select “Join NPS” at nps.kfintech.com.
Step 2:Your screen will get a new page. By entering your full name, mobile number, email address, and subscriber type (individual or corporate subscriber), you will be required to register.
Step 3:You will receive a one-time password (OTP) on your mobile number after clicking “Create Account.” The OTP only lasts for thirty minutes. To proceed to the next step, confirm the OTP.
Step 4:The individual is required to complete five sections: Personal Information, KYC and FATCA Information, Investment Information, Upload Documents, and Payment.
The individual will be required to provide information about their residential status, PAN, gender, salutation, date of birth, country of birth, place of birth, nationality, name to be printed on PRAN card, marital status, and occupation details in the personal details section.
Step 5:Click “Save and Proceed” after you have added the details.
Step 6:FATCA and KYC details are the next steps. PAN or Aadhaar can be used to complete the KYC process. If the individual chooses to conduct KYC using a PAN, they will be required to pay a one-time fee of Rs 125, which includes GST at 18%.When carrying out KYC using Aadhaar, there are no additional costs.