Porta­bil­ity through PRAN

Consumer Voice - - Pension -

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.

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