In order to promote NPS in corporate sector, NPS Corporate Sector model was launched by the regulator in December, 2011. It is based on the concept of Employer-Employee relationship.
Under the NPS Corporate Sector model, the employee as well as the employer, can contribute to Tier I NPS account of the employee as mentioned below:
- Equal contribution from employer and employee
- Un-equal contribution from employer and employee
- Contribution either from employer or from employee
Tax Benefit on Tier-1 Contribution
- Contribution made by an individual to the extent of Rs. 1,50,000 p.a. is eligible for deduction (This deduction issubject to the overall ceiling of Rs. 1,50,000 p.a. specified u/s 80CCE of the Income Tax Act). Further maximum deduction allowable under this section cannot exceed 10% of salary (Basic + DA). An additional contribution of Rs. 50,000 p.a. is eligible for an additional deduction of Rs. 50,000 p.a. under Section 80 CCD (1B).
- Contribution made by the employer of the subscriber to the extent of 10% of salary (Basic and DA) is additionally eligible for deduction u/s 80CCD (2) of Income Tax Act, 1961 without any upper limit in terms of value. This benefit is available to subscribers under corporate model only when the employer deducts employer contribution from salary.
An employee can join NPS through Corporate Sector model only if his/her employer is registered for the same. In order to know more about NPS Corporate Sector Model, please write to nps@kotak.com
- Make contribution in NPS account from any of the NPS enabled Kotak Bank branches from Kotak Savings account and online from Kotak netbanking
- Easy Accessibility of Account Details
- Online Access: Subscribers get log in ID and Password of Central Recordkeeping Agency (CRA) system where account details can be seen. Subscribers can also
- View / Change of the contact details (Tel / Mobile / E-Mail ID)
- Change of scheme preference
- Fund Manager Asset allocation change
- View/download their Account statements
- Initiate the request of withdrawal of funds from Tier II a/c
- Initiate extension of contribution beyond 60 years &
- Initiate deferment of purchase of annuity beyond 60 years etc.
Get T-PIN from CRA. By using this T-PIN, subscribers can call on CRA call centre number to access their account details.
- Access to NPS Mobile Application: Subscriber candownload the mobile app from Google Play store. Subscribers can avail the below mentioned facilities in the mobile app.
- View / Change of the contact details (Tel / Mobile / E-Mail ID)
- Change of scheme preference
- Fund Manager & Asset allocation change
- View last 5 contributions.
- Latest value of the holdings.
- Request latest statement of transaction to the registered email ID
- Access through Branch: Subscriber can visit any of the NPS Enabled Kotak Mahindra Bank Branches to get the details of NPS account/ submit the offline NPS account opening forms/ modification requests etc.
- Statement of Account: Subscribers can view/ download their account statements by logging into CRA-NSDL portal. NSDL also sends annual account statement comprising all the financial transactions to each subscriber at the end of each financial year.
- Access through Net Banking: Kotak Mahindra Bank Savings Accounts customers can make contributions to their NPS Account, check account details & fund performance at their own convenience through Kotak Net Banking Website.
- Issuance of PRAN Card: Upon successful registration, subscriber gets PRAN Card that contains Subscriber's Name, Subscriber's Father's Name, Date of Birth of Subscriber, Signature and Photograph of Subscriber.
- No TDS deducted on withdrawal amount.
