Secure Your with NPS
DKM Online offers comprehensive solutions for the National Pension Scheme (NPS) is a government-sponsored retirement savings scheme in India. It aims to provide financial security to individuals post-retirement through systematic savings during their working life. NPS is designed to encourage long-term savings and offers various investment options.
Explore Different Types of NPS Accounts
Tier I
Employer / Employee contribute for retirement into this restricted-withdrawal account. Income Tax benefits as per IT Act, 1961 available for both employer and employee contributions.
Tier II
Voluntary savings facility, where the subscriber can avail fund management facility at very low costs. Subscribers are free to withdraw amount from this account. However, tax benefits are not available.
Significant Tax Advantages
Employer
Contributions made by the employer (up to 10% of [Basic + DA) is allowed as a business expense u/s 36 (1) iv (a) of Income Tax Act 1961.
Employee
- Tax Benefit of Rs. 1.50 Lacs u/s 80C of the Income Tax Act & Additional Tax Benefits of Rs. 50,000/- u/s 80CCD 1(B).
- Tax Benefit on the contribution made by the employer u/s 80 CCD (2) of IT act up to 10% of salary [Basic + DA (Maximum limit of 7.5 Lakh) ] which is in addition to the tax benefits available u/s 80C.
- No Monetary ceiling.
- The total tax benefit under employer’s contribution towards PF, NPS and Superannuation fund (SAF) is capped at Rs. 7.5 lacs for tax exemption.
Subscribers
- Amount utilized for purchase of annuity at the time of exit (Minimum 40% mandatory) is treated as income and is taxable. Remaining 60% of withdrawal is Tax Exempted
No Service tax/GST on annuity purchase.
Partial Withdrawal from NPS is tax-exempt
Frequently Asked Questions
DKM offers National Pension System (NPS) services to employees of client organizations. This service helps employees easily enroll, manage, and contribute to their NPS accounts, ensuring a hassle-free process for securing retirement benefits and financial security.
- Minimum Age: 18 years (as of the date of application).
- Maximum Age: 70 years (as of the date of application).
All employees of the client organization are eligible to avail of this service, provided their employer has partnered with DKM for managing NPS-related processes. Both new and existing NPS subscribers can benefit from this service.
Tier 1 Account (Mandatory Pension Account):
- Minimum Contribution at the Time of Account Opening: ₹500.
- Minimum Annual Contribution: ₹1,000 (to keep the account active).
- Minimum amount of subsequent contribution: ₹500
Frequency of contribution permitted: Unlimited
Tier 2 Account (Optional Investment Account):
- Minimum Contribution at the Time of Account Opening: ₹1,000.
- No minimum annual contribution is required; you can invest as per your choice.
- Minimum amount of subsequent contribution: ₹250
Frequency of contribution permitted: Unlimited
Employees benefit from:
- Simplified onboarding and account management processes.
- Dedicated support for handling contributions and queries.
Employees can enroll through:
- The dedicated person provided by DKM.
- Submission of required documents like proof of identity, address, and photographs, with guidance from DKM representatives.
DKM provides a dedicated support team for all NPS-related assistance. Employees can reach out via:
- Email: [email protected]
- In-person assistance during scheduled HR sessions or help desks arranged by DKM.
To enroll in NPS, the following documents are required for KYC compliance:
- Proof of Identity: Aadhaar Card, PAN Card, Passport, or any government-issued ID.
- Proof of Address: Aadhaar Card, Utility Bills, Passport, or Voter ID.
- Photograph: Recent passport-sized photograph.
- Bank Account Details: For linking contributions and withdrawals.