Introduction

The National Pension Scheme (NPS) is a voluntary, long term retirement savings scheme initiated by the Government of India. Employer contributions to NPS are significant as they contribute a percentage of the Amplite’s basic salary to the NPS account. This contribution falls under Section 80CCD(2) of the Income Tax Act providing tax benefits up to 14% of your basic salary.

The importance of employer contributions lies in:

Financial Security: Employer contributions enhance the overall retirement savings of Amplite’s, ensuring a more substantial corpus upon retirement.
Tax Benefits: Contributions made by Ample is considered as part of the Amplite’s salary package, but not taxable in the hands of the Amplite’s up to a specified limit.
Long-Term Financial Planning: NPS encourages disciplined savings and long-term financial planning, enabling Amplite’s to build a sizable retirement corpus.
Government Regulation and Monitoring: NPS operates under the oversight of the PFRDA (Pension Fund Regulatory and Development Authority), ensuring transparency accountability, and regulatory compliance.

Scope

Eligibility: All full-time, permanent & probation Amplite’s are eligible to participate in the National Pension Scheme (NPS).
Consultants, contractual staff, Apprentice and interns are not eligible for NPS.
Tax Advantage: Amplite’s in higher tax brackets would benefit from the tax saving provisions of NPS. By opting for a higher contribution towards NPS (the contribution amount will be reduced / adjusted from the grade allowances), the overall taxable income shall be reduced.

Employee and Employer contributions

Employee Contribution: Deducted from salary and eligible for tax deductions under:

Section 80CCD(1): Up to 10% of salary (Basic + DA), within the ₹1.5 lakh overall limit under Section 80C.
Section 80CCD(1B): Additional deduction of ₹50,000 (over and above the ₹1.5 lakh limit) (Applicable under Old Tax Regime only)

Employer Contribution 80CCD(2): This section allows salaried individuals to claim additional deductions upto 14% of Basic Salary, over and above the limits under section 80C and 80CCD(1), for employer contribution to NPS

Tax Regime	Deduction Limit (under 80CCD(2))
Old Regime	Up to 10% of salary (Basic + DA)
New Regime	Up to 14% of salary (Basic + DA)

Note: There is a maximum limit of Rs 7,50,000 on employer contribution to PF, NPS and Superannuation. Thus, any contribution by the employer over and above the limit

of such excess amount will be considered as perquisite and taxable under section 17(2) of Income tax Act.

Ample will remit the contribution to NPS on or before the 5th of every month.
Contributions may vary retrospectively based on your actual earnings and will be effective from the date of salary changes, such as revisions or lose of pay.
No contribution will be made during the suspension period. If the suspended Amplite is reinstated / resumed, the contribution for that period may be allowed based on the Management’s approval.
Contribution on account of pay arrears after cessation of employment or otherwise will be remitted s per PFRDA guidelines. If guidelines does not permit remittance to NPS, the amount will be paid to Amplite’s directly.

NPS Intermediaries

Ample has appointed Axis Bank Ltd to perform the below tasks as per PFRDA guidelines:

Point of Presence (POP): First point of contact between Ample and its subscribers (Amplites) for any NPS related issues, it will handle subscriber registration, KYC verification, receiving and transferring contributions to individual NPS accounts, and forwarding instructions from Ample.
Pension Fund Manager (PFM): Manage retirement savings of the subscribers under NPS. PFMs are notified by PFRDA which can be chosen by subscribers from time to time. Subsequently, it shall remain at the discretion of the subscriber to opt for any PFM empaneled by the PFRDA.
Central record Keeping Agency (CRA): Ensure record keeping, administration and customer service functions for all the subscribers of the NPS. It deals with issuance of unique Permanent Retirement Account Number (PRAN) to each subscriber, maintaining a database of all PRANs issued and recording transactions relating to each subscriber’s PRAN. CRA also act as an operational interface between PFRDA and other NPS intermediaries such as PFMs, Annuity Service Providers, Trustee Bank etc.

Enrolment Process

Existing Amplites/New entrants already having NPS Account, his/her PRAN will be shifted to corporate scheme. For all other Amplites, enrolment will be done through the Axis Bank Ltd guidelines.
Tier – I account will mandatorily be opened under NPS. Income Tax benefits as per the Income Tax Act, 1961 can be availed by employer and employee.
Tier – II account voluntary savings account that offers flexibility to withdraw funds anytime without restrictions but does not provide any tax benefits.
Nomination facility is available under NPS and Amplites will be allowed to register up to three nominees only as per PFRDA guidelines.
Amplites can change/correct personal details, bank details, reissue of I-PIN/T-PIN/PRAN Card, update his/her photograph and signature on NPS portal.

Procedure on Zoho

Create the Permanent Retirement Account Number (PRAN) via NSDL portal(protean). Link and guidelines available on Zoho -> Amplites Benefits -> NPS Form
After PRAN creation, submit a request on the Zoho portal along with your PRAN and contribution details
Once the request is approved by the HR on Zoho, the contribution amount will be adjusted from your grade allowance, and the deduction will be made from the upcoming month salary and credited to your NPS account.

Investment Choice for Asset Allocation

Under NPS, Amplite’s can choose between two investment options:

Active Choice: The Subscriber actively decides the allocation of contributions across various asset classes such as Equity (E), Corporate Bonds (C), Government Securities (G), and Alternate Investments (A).
Auto Choice: The contributions are invested in a life-cycle fund, where the allocation to different asset classes changes automatically with the age of the subscriber

Amplites may change the selected investment pattern up to four times in a financial year. Beyond this limit, it will remain at the discretion of the Amplite’s to retain or modify the chosen investment pattern as per PFRDA guidelines.

Partial Withdrawal

Amplite’s who has been in NPS for 5 years shall have option to partially withdraw upto 25% of the self-contributions made by the Amplite’s for maximum three times during the entire tenure of subscription, against the specified reasons, as per notified NPS guidelines. Presently, withdrawal is allowed for following:

Higher education of children
Marriage of children
For the purchase/construction of residential house (in specified conditions)
For treatment of critical illness
To meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber
For skill development/re-skilling or any other self-development activities

Note: Contributions made through the employer under the Corporate NPS are not eligible for partial withdrawal

Exit from NPS

On attaining the age of retirement, Amplite’s will be required to invest minimum 40% (presently) of accumulated corpus to purchase a life annuity from any PFRDA approved life insurance. The remaining wealth 60% of Corpus can either be withdrawn in a lump sum at retirement.
After Retirement, Amplite’s/subscriber shall have option to continue in NPS till 75 years which will be regulated as per PFRDA guidelines
On death: In such an unfortunate event, nominee will claim 100% of the NPS pension wealth in lump sum (Non taxable).
Before 60 years: In case of cessation from employment in company, Amplite’s/subscriber would be required to invest at least 80% of the pension wealth to purchase a life annuity from any PFRDA – regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum
Amplites/Subscriber shall have option to withdraw from the NPS without buying a annuity/pension plan in cases corpus in NPS account is less than limit prescribed by PFRDA which is currently Rs. 5 lakh (matured) and early exits Rs. 2.5 lakhs.
Amplite’s will provide duly filled applicable WITHDRAWAL FORM and copy of PAN, PRAN, Address Proof and Bank details to HR who shall forward the same to Axis Bank Ltd after verification 15 days prior to retirement

Charges

Charges payable to different intermediaries of PFRDA will be paid by subscriber as per PFRDA guidelines. The present rate of charges are enclosed at Appendix-2

Access to NPS account

Online Mode

Web based Login on https://cra-nsdl.com/CRA/

2. Mobile application

Download mobile App (Android/IOS) (NPS by Protean eGov)

Appendix-2
Head	Standard charges
Initial Subscriber Registration	Rs.200 + Applicable taxes
Initial Contribution	0.25% of the contribution, maximum Rs. 25,000 + Applicable taxes
Subsequent Contribution	0.25% of the contribution, maximum Rs. 25,000 + Applicable taxes