The government recently changed income tax laws to make NPS or National Pension Scheme more attractive. On retirement or reaching the age of 60, an NPS subscriber can withdraw 60% of the corpus and it will be exempt from income tax, as compared to the 40% limit earlier. Contribution towards your NPS account can be made both online or offline. If you are making the contribution online, you have the option of making the payment through credit cards. But do note the charges. NPS also allows you to make contribution through other modes like debit cards and internet banking.
Contributions into NPS account are credited two days after making payments online
To make NPS contribution through credit card or other modes, log into your NPS account by entering user id and password.
Then select the ‘Transact Online’ tab and then select ‘Contribute Online’.
Subscribers can opt to contribute through eNPS. They will be redirected in a new tab to eNPS website for making online contribution. (Subscribers can also go directly to the eNPS website if you wish to.)
Then subscribers will be asked to verify/enter their PRAN (Permanent Retirement Account Number) and an OTP will be sent to the subscribers through email/SMS.
After they enter the OTP, NPS subscribers need to select account type (Tier I or Tier II) and enter the amount. They will be taken to payment different options: credit card, debit card and internet banking.
Before you make payments, note the transaction charges (Net Banking: ₹0.60 per transaction + [email protected]%; Debit Card: 0.80% of the transaction amount + [email protected]%; Credit Card: 0.90% of the transaction amount + [email protected]%). Also, note that payment through debit card is only up to ₹2,000, says eNPS website.
Also note that POP (or point-of-presence service provider) trail commission will be applicable on the contribution amount @ 0.10% (subject to minimum of ₹10 and maximum of ₹10,000 per transaction). This charge will not be applicable for subscribers registered in eNPS through Aadhaar, says eNPS website.
Contributions are credited into NPS accounts on T+2 basis or trade date plus two days.
NPS contribution through app
NPS subscribers also have the option of making contribution online through NPS apps. The NPS app gives subscribers an option to directly make contribution without logging in by entering their PRAN.
Every year, an NPS subscriber has to contribute a minimum of ₹1,000 towards Tier I account.