Can a person who is eligible under old pension scheme of central government can enjoy the additional benefit of ₹50,000 by investing in New Pension Scheme in addition to ₹1.5 lakh under Section 80CCC. Please also tell me how and where the NPS account can be opened?
- Bhupender
Yes, you can invest ₹50,000 in National Pension Scheme and claim additional tax deduction under Section 80CCD(1B). This is in addition to the total tax deduction of ₹1.5 lakh allowed under Section 80C.
You should submit the composite application form for subscriber registration with supporting KYC documents to Point of Presence (POP) Service Provider to open a Permanent Retirement Account (PRA). To open a Tier II account, the individual should submit a copy of Permanent Retirement Account Number (PRAN) Card along with Tier II activation form. You should also make the first contribution (a minimum of ₹500 for Tier I and ₹1,000 for Tier II) at the time of applying for registration. The initial contribution is optional in the case of companies. Application form for registration can be downloaded from https://npscra.nsdl.co.in/
Here is an FAQ on NPS: NPS FAQs - All You Need to Know.
This article was originally published on December 11, 2015.
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