Portability through PRAN

For those who change jobs frequently due to career prospects or change of location, the NPS offers seamless portability. You can continue to contribute or arrange for contribution from your new employer and ensure uninterrupted subscription based on a unique identification number called Permanent Retirement Account Number (PRAN). This number is allotted to you by Central Record-Keeping Agency (CRA), who maintains all opening forms, KYC documents, etc.

If investing in NPS, both the employer (u/s 80 CCD [2]) and the employee (u/s 80 CCD [1]) can avail of income tax exemption on their contributions. Corporates can also claim tax relief as NPS contributions are accepted as ‘business expenses’ u/s 36 (1) of Income Tax Act with effect from 1 April 2012.

Any individual between 18 years and 60 years of age is eligible to open a PRAN account. To open an account, the applicant only has to submit a prescribed ‘subscriber registration form’ at the PoP service provider (designated bank’s branch, NBFC, etc.) of their choice. Alternatively, forms can be uploaded on the website of PFRDA. ‘Know Your Customer’ (KYC) documents (identity and residence proofs) are mandatory for a PRAN applicant.