Here are 5 key things to know about funds transfer to National Pension Scheme
If you wish to transfer your savings from recognised Provident Fund (PF) and Superannuation Fund accounts to National Pension Scheme (NPS) here are five key things that you should know about funds transfer to NPS.
Now, you can transfer your retirement savings from recognised Provident Fund (PF) and Superannuation Fund accounts to National Pension Scheme (NPS) and the income for which would be treated as non-taxable.
India's pension fund regulator the Pension Fund Regulatory and Development Authority (PFRDA) on Tuesday announced that the subscribers from recognised Provident Funds and Superannuation Funds would be able to transfer their corpus from these funds to National Pension System (NPS) without any tax implication.
Here's are 5 key things to know about transferring your Provident Fund/Superannuation Fund to NPS:
1. You should have an active NPS Tier-I account which can be opened either through the employer (where NPS is implemented) or through the points-of-presence (POPs) or through online eNPS on the NPS Trust website-www.npstrust.org.in
2. If you are a subscriber under Government/Private Sector employment then you should approach the recognised Provident Fund/Superannuation Fund Trust through the current employer by giving request for transfer to your NPS account.
3. The Recognised Provident Fund/Superannuation Fund Trust may initiate transfer of the Fund as per the provisions of the Trust Deed read with the provisions of the Income Tax Act, 1961.
4. The Recognised Provident fund/Superannuation Fund may issue the cheque/draft in the name of:
a) In case of Government employee: Nodal Office Name (PAO or CDDO Name) <> Employee Name<> PRAN (12 Digit No)
b) In case of subscriber presently under Private Sector including All Citizen Model: POP (Name of the POP) Collection Account-NPS Trust<>Subscriber Name<>PRAN (12 Digit No)
5. In case of Government or Private Sector employee, the employee should request the recognised Provident Fund/Superannuation Fund to issue a letter to his present employer mentioning that the amount is being transferred from the recognised Provident Fund/Superannuation Fund to be credited in the NPS Tier-I account of the employee, which would be recorded by the present employer or POP as the case may be, while uploading the amount.
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