eNPS -A golden opportunity to save tax.

Only a few days left before the 31st March deadline and still thinking of any tax saving resort? Here’s a saviour then!  Introduction of eNPS have made things so much easier and so much faster that you can invest in NPS with a click of mouse without having to physically visiting any banks or submission of documents! What more can one ask for that too at such nick of time.

You can avail the tax benefit for investment made upto Rs.50,000 over and above the limit of Rs.1,50,000 under section 80C. Such investment can help you save tax upto Rs.15,450. So, this investment is definitely worth it.

Earlier, investment in NPS was a time-consuming task involving filling of large forms, Attaching your photographs, submission of KYC documents, attaching age proof, address proof, cheque of contribution, etc. After all these formalities waiting for the application to get processed and to receive a Permanent Retirement Account Number (PRAN) to open a NPS account in your name. To overcome these hardships, eNPS has been introduced.

You just need to have your PAN or Aadhaar number and  a Bank account with any of the registered Point of Presence empanelled for KYC verification. (The list of banks is available in the eNPS website). If you have an Aadhaar number, the KYC process will be done using Aadhaar, an OTP (one-time password) will be sent to your mobile phone for authentication. Your personal details will also be fetched from the Aadhaar database. You can fill up the rest of the form online and upload your signature online.

The steps to be followed are as follows:

1. Open https://enps.nsdl.com/eNPS/NationalPensionSystem.html
2. Click on “Registration” and fill the “ Online Subscriber Registration” .
3. After entering the details, an OTP will be sent on your registered mobile number, enter that OTP and proceed.
4. After filling the form and completion of its verification, make the initial contribution.
5. Upon payment of the initial contribution, you will be allotted a PRAN immediately.
6. Print the form, paste photograph, sign and post the Form to Central Recordkeeping Agency(CRA) within 90 days of allotment of PRAN.

Address for posting the same is as follows:

Central Recordkeeping Agency (eNPS), NSDL e-Governance Infrastructure Limited,1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013

With this, a lot of time will be saved and your tax saving will be done immediately. Payment through credit cards is also possible in eNPS, which again will lessen the hardships of many investors. If you had opened NPS accounts under offline mode then you can switch to online mode now. So, hurry up! You still have a few more days left! Do not miss out this golden opportunity to save your taxes!