National Pension Scheme || TaxManager.in | E-filing Income Tax: Income Tax Return (ITR) Filing Online

National Pension Scheme

The National Pension System (NPS) is a contributory pension system designed to provide financial security to individuals during their retirement years. Under NPS, contributions from subscribers are collected and accumulated in individual pension accounts known as Permanent Retirement Account Number (PRAN). This system operates through a network of points of presence, a central recordkeeping agency, and designated pension funds as specified by regulations.

Benefits of NPS.

Transparency: NPS offers transparency and cost-effectiveness by investing pension contributions in pension fund schemes. Subscribers can monitor the value of their investments on a day-to-day basis, ensuring full visibility and accountability.

Portability: Each subscriber is assigned a unique PRAN, allowing for portability of the pension account. This means that even if an employee is transferred to a different office or location, their PRAN remains unchanged, ensuring seamless continuity of pension benefits.

Simplicity: NPS simplifies the process of pension planning by requiring subscribers to open an account with their nodal office and obtain a PRAN. This straightforward approach streamlines the enrollment process, making it accessible to all individuals.

Regulation: NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring adherence to transparent investment norms and regular monitoring. Fund managers are subject to performance reviews by the NPS Trust, maintaining accountability and safeguarding the interests of subscribers.

Tax Benefits of NPS.

Employee Contribution: Contributions made by the employee to their NPS account are eligible for tax deduction under Section 80 CCD (1) of the Income Tax Act. This deduction can be claimed on contributions up to 10% of the employee's salary (Basic + DA), within the overall limit of Rs. 1.50 lakhs under Section 80 CCE.

Employer Contribution: Employer contributions to the NPS account, up to 10% of the employee's Basic and DA (without any upper ceiling), qualify for tax benefits under Section 80 CCD (2). This deduction is separate from Section 80 C.

Exclusive Tax Benefit: In addition to the deductions under Section 80 CCD (1), subscribers can claim an extra tax deduction for additional contributions to their NPS account, subject to a maximum of Rs. 50,000 annually, under Section 80 CCD (1B). This was introduced in the Budget 2015-16.

Document for Tax Benefit: Subscribers can utilize the Transaction Statement printout as proof for claiming tax benefits on their NPS contributions.

Loan Facility: Currently, there is no provision for subscribers to obtain loans against their NPS holdings.

Frequently Asked Questions - FAQs

Yes any individual having the following type of Income can go for Taxmanager services:-

Income From Salary.
Income from House Property.
Income from sales of saving schemes like Shares, Mutual Funds Units, Bonds.
Income from other sources (Interest from investments, dividends, income from winning lottery or horse race etc).

Register with Taxmanager.in and fill your Personal Information.
Enter the relevant financial details like Income sources, Investments, Expenditure, Losses etc.
Taxmanager.in generate your return based on this data.
View your tax computation and review other information.
Make a payment to Taxmanager.in based on the Filing Plan you chose.
Authorize Taxmanager.in to efile your Income Tax Return.
Receive an Acknowledgement via eMail (if return is signed digitally).

Go to My Account page.
Click on Create New ITR and provide it an appropriate name.
Click on Submit button.
ITR will add in the My Account Page.
Click on the Edit Button for inserting and updating the information.

After Creating your ITR Click on the Edit Button for inserting the information
Follow Personal Information link for fill your personal details.
Follow Salary Link for fill the information of your income sources and other financial details.
Follow Deduction link for fill the information of Investments and Expenditures.
Follow the others link like Losses, Tax Computation, Bank Details, Filling Status, AIR Details, Verification and fill the related information.

Follow the Income Link on My ITR Page.
Click on the Edit Button on Income Summary page for Providing the details of Income Source.
Go through Income From Salary if you have income from Salary.
1. Click on Edit button for providing Employer's Detail.
2. Provide the Employer Information as mention in your Form-16
3. Click on Save & Continue with form-16 button.
4. Fill the details of your Income as mention in the Form-16
5. Provide the Investment and Deduction details.
6. Click on the Save and Continue button.
7. Follow the same process if you have more than one Form-16.
Income from House Property: Provide information about the income you are getting from your house-hold properties. If you don't have that income then fill the amount of interest on housing loan from Form-16 provided by your employer.
Income from Capital Gain: The income you are withdrawing through Mutual Funds, Shares, Bonds and Other Capital assets
Income from Other Sources: The income you are getting from family pension, agricultural, Rent, lottery, gift etc.
Clubbing of Income: Provide details of the particular person if you want to clubbed your income with your family members.

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