What is UAN? How to check your UAN?

Initially, when any of the individuals start a new job with any of the organizations, they get a new provident account number. But it is not enough for an employee to manage its PF contributions. The whole procedure is very complicated for an employee to evaluate all of their employee provident funds properly. To overcome this issue, UAN is being introduced by the employee provident fund organization.

What is UAN?

UAN is a 12-digit identification number, which both you and your employer are assigned. Your UAN remains the same and portable throughout your life, whether or not you change jobs or how many. However, with every job switch, a new member identification number (ID) is provided by the EPFO which is linked to your UAN. When switching jobs, you can request a new ID by providing your UAN to the new employer. This ID will as usual be linked to your UAN which will further ease all EPF processes like withdrawals and transfers.

How to check your UAN?

Go to the EPFO Member Services Portal.
On the bottom-right, click Know Your UAN Status.
Now you have one of three choices to find your UAN. You can find UAN by PF member ID, Aadhaar, or PAN. Select any of these three.
Now enter all the details requested on this page, which includes your name, date of birth, registered mobile number, registered email address, and captcha.
Click Get Authorization Pin.
On the next page, click the box next to I Agree.
Now check your phone for an SMS from EPFO, which contains an OTP.
Enter the OTP on the EPFO website.
Click Validate OTP and get UAN.
Check your phone for an SMS from EPFO containing your UAN.

How Can you Benefit from Knowing UAN?

You can enjoy numerous benefits of having a Universal Account Number:

You can withdraw or transfer your PF money anytime using UAN
Both your employer and you can manage a record of PF account and its balance using the hassle-free online UAN member portal
Your employer can quickly validate your PF withdrawal request or submit PF into your account using the UAN portal
UAN brings all your KYC and PF details into one place, which has easy accessibility online.

Wealthcafe advice:

UAN numbers are an excellent way to keep your PF funds handy and will help you save money secured all through your career until you feel the need to partially or fully withdraw it. Also, adopting this digital route allows you to maintain and supervise your money comfortably using the UAN portal and app.

Uncategorized - 10/29/2021

Things to note about HRA and FAQ of HRA

Many times, people have to move to a different city in order to work. In such cases, they may end up paying rent for accommodation. Organizations often compensate employees for this expenditure by paying them a house rent allowance over and above their basic pay. This is usually a part of the salary structure. However, HRA is eligible for income tax exemption and can be a great way to reduce your taxable income.

Quest 1. What if I have a Home Loan as well? Can I claim a deduction on home loan interest?"

Ans. Yes. HRA has no bearing on your home loan interest deduction. Both can be claimed simultaneously.

Read this article for more details- Can I claim Tax Benefit on both HRA & Home Loan?

Quest 2. “My employer doesn’t provide me with HRA? Am I losing out on saving tax?”

Ans. Not at all. If you are making payments towards rent for any furnished or unfurnished accommodation occupied by you for your residence, but do not receive HRA from your employer, you can claim a deduction under section 80GG.

However, certain conditions must be fulfilled to claim this deduction:

You are self-employed or salaried
You have not received HRA at any time during the year for which you are claiming 80GG
You or your spouse or your minor child or HUF of which you are a member – do not own any residential accommodation at the place where you currently reside, perform duties of office, or employment or carry on business or profession.

In case you own any residential property at any place other than the place mentioned above, then you should not claim the benefit of that property as self-occupied. That other property would be deemed to be ‘let out to claim the deduction under section 80GG.

Quest 3. “So how do I claim the Section 80GG deduction?”

Ans. The least of the amounts below will be considered as the deduction under this section:

Rs 5,000 per month
25% of Adjusted Total Income
Actual Rent less 10% of Adjusted Total Income

Adjusted Total Income means Total Income less long term capital gain and short term capital gain under section 111A and Income under section 115A or 115D and deductions 80C to 80U (except deduction under section 80GG).

Quest 4. “I am living with my parents. How do I claim the HRA deduction?”

Ans. Let’s understand this through a case: Ms. Sonam works at an MNC in Bangalore. Her company provides her with a house rent allowance. But she doesn’t live in rented accommodation; she lives with her parents instead. How can she make use of this allowance?

Sonam can pay rent to her parents and claim the allowance, provided they own the place they currently live in. All Sonam has to do is enter into a rental agreement with her parents and transfer money to them every month.

This way Sonam can make a nice gesture and give something back to her parents, and also save some tax.

Important: Sonam’s parents will have to show the rent she paid in their income tax returns. But as a family, they will save up. They can generate their Rent Receipts.

Ques 5. “I have forgotten to submit rent receipts to my employer. How can I claim the HRA tax benefit now?”

Ans. The good news is that HRA can be claimed directly on your income tax returns. . All you have to do is manually calculate the HRA tax exemption and then report this as an expense under Section 10(13A) in ITR1. You will also need to declare this in Form 16 - Part B. You will then be able to claim a refund of tax that has been deducted in excess.

Ques 6. Can the maintenance charges that I pay for my apartment be included for HRA tax exemption?

Ans. No. HRA deductions are allowed only for rent payment. Maintenance charges, electricity charges, utility payments, etc. are not included.

Ques 7. Can a self-employed taxpayer claim HRA?

Ans. No, a self-employed individual cannot claim HRA exemption under the Income Tax Act, 1961. A salaried individual having an HRA component in their salary structure can claim HRA exemption under Section 10 (13A) of the Income Tax Act.

Crackdown on tax evaders

Submitting fake rent receipts has been one of the most common ways for individuals to reduce their taxes, despite it being unethical. However, the new rules put in place by the Income Tax Appellate Tribunal (ITAT) are expected to change all this. Assessing officers can question individuals and ask them for additional documentation if they feel the rent receipts provided are not adequate proof. This is just one of several measures that the government has put in place to curb instances of tax evasion and black money.

Failing to comply with these rules and providing fake rent receipts is considered fraud, and could result in serious consequences.

So, ensure you are well versed with the tax filing process and that you have all the necessary documentation in place for filing returns. It will make the entire process smoother and quicker for you.

Uncategorized - 10/29/2021

What is an allowance? What are the types of allowance?

Taxpayers are usually aware of deductions under Section 80C of the Income Tax Act or for which they are eligible. However, it is noticed that taxpayers are unaware of the taxability of allowances and the exemptions available under different sources of income.

If you think that your entire salary is liable to taxes, then that is not true. Your overall package, often known as CTC, comprises many allowances.

While your basic salary is fully taxable, there are other benefits offered to the employees in the form of allowances and prerequisites. These allowances are offered to employees for the expenses they bear during work. There are three types of allowances:

Fully-taxable allowances

The fully taxable allowances are not exempted from Income Tax. You have to pay the full tax applicable to these allowances.

Potentially taxable allowances

The partially taxable allowances are exempted from the Income Tax to a limit.

Fully Exempt allowances

The non-taxable allowances are exempted from the Income Tax fully. But, these are usually offered to government employees.

Let’s see how these allowances can impact your take-home salary.

Fully-taxable allowances	Potentially taxable allowances	Fully Exempt allowances
Basic Salary	House Rent Allowance	Food Allowance
Dearness Allowance	Leave Travel Allowance	Children education allowance
Special Allowance	Car Maintenance Allowance	Conveyance Allowance
Overtime Allowance		Daily Allowance
Bonus		Academic and Research Allowance

Wealth cafe Advice

As soon a person joins an organization, s/he is provided with the breakup of the fixed salary and allowances. However, most of the time individuals are ignorant about taxation. But allowances can help employees save taxes provided they are placed in the salary intelligently.

Salary restructuring is not possible in every organization, but if possible, employees should try to include allowances that are non-taxable or are partially taxable in nature. This way they can reduce the tax liability to some extent.

Thus, one should take note that through intelligent planning one can use allowances to save taxes and reduce the tax outflow.

Uncategorized - 10/29/2021

What is Form 16/Form 16A - How does it help?

A TDS certificate is a document issued by the deductor to the deductee. Here, the deductor is someone who deducts tax at the source of the payment, while the deductee is the person who receives the tax-deducted payment.

However, there are two types of TDS certificates issued by the deductor -

Form 16: It is issued by an employer to all its employees, incorporating details of the tax deductions made by the employer in the given financial year.
Form 16A: It is issued in all other cases besides salary.

To under these two certificates, consider the following example -

Mr. Hemant works as a salaried employee at a reputed company in Mumbai. The tax deductions of his salary are at 15 percent. The company will thus provide him with Form 16 describing the amount of salary paid to him and the tax deducted from it.
In another case, if Mr. Hemant was a working professional who receives professional fees from a company that is subjected to TDS, then he will be provided with Form 16A.

How can you use Form 16 to your advantage?

Help in filing Income Tax Return
Proof of Income
Document stating how your tax was computed and check any anomalies
One place document to see all your tax-saving investments
Loan assessment and approval
Visa issuance
On switching jobs: Helps the next employer compute your tax liabilities on the basis of what your previous employer has already deducted
Since it is a document of the tax credit, you can check for any overpaid taxes, which will help you in claiming refunds.

FAQs on Form 16

1. How is Form 16 generated?

The TDS CPC is responsible for the generation of Form 16 on the basis of the quarterly TDS and TCS statements processing. A deductor will be required to raise a request for the same on the TRACES website.

2. When are the due dates for the issuance of Form 16 and Form 16A certificates?

Form 16 is issued annually and is supposed to be issued by the 31st of May. On the other hand, Form 16A is issued quarterly and is issued within 15 days from the due date of furnishing the statement of tax deducted at source as per rule 31A.

3. Can I get a duplicate Form 16 certificate if I misplace the original one?

Yes, you have to get in touch with your deductor to get the duplicate certificate issued

4. If I am a pensioner, who will issue my Form 16?

If you are a pensioner, the bank through which you are receiving your pension will issue Form 16. Your previous employer will not be issuing Form 16 in this case.

5. Can I download my Form 16 certificate without enrolling myself on the TRACES website?

No, you have to be a registered user on the TRACES website to be able to download your Form 16 and Form 16A.

6. How can I get Form 16?

You will need to contact your employer in order to receive Form 16 are an employer, it is compulsory for you to issue Form 16 to employees.

Uncategorized - 10/29/2021

TDS Rate Chart for AY 2021-22 and FY 2020-21

Due to the Covid-19 situation, the rates of TDS on payments made to resident Indians have been reduced by 25% for the period starting from 14th May 2020 to 31st March 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at a higher rate due to non-furnishing of PAN/Aadhaar.

The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and depositing TDS within the stipulated due date.

Section	Nature of payment	Threshold Limit	Applicable from 01/04/2020 to 13/05/2020		Applicable from 14/05/2020 to 31/03/2021
			Resident	Non-resident *	Resident	Non-resident *
		Rs.	TDS Rate (%)	TDS Rate (%)	TDS Rate (%)	TDS Rate (%)
192	Salaries	-	Normal slab rate	Normal slab rate	Normal slab rate	Normal slab rate
192A	Premature withdrawal from EPF	50000	10	10	10	10
194	Dividends	5000	10	-	7.5	-
194A	Interest (Banking co., co-operative society engaged in banking, post office)	40000	10	-	7.5	-
194D	Insurance commission - Other than Company - Company	15000	5 10	- -	3.75 10	- -
194F	Repurchase units by MFs	-	20	20	15	20
194H	Commission/Brokerage	15000	5	-	3.75	-
194I	Rent of - Plant/Machinery /Equipment - Land and Building/Furniture & Fixture	240000	2 10	- -	1.5 7.5	- -
194IA	Transfer of certain immovable property other than agricultural land	50 lakh	1	-	0.75	-
194IB	Rent by Individual/HUF	50000 per month	5	-	3.75	-
194J	Professional Fees	30000	10	-	7.5	-
194J	Technical Fees (w.e.f. 01.04.2020)	30000	2	-	1.5	-
194N	Payment of a certain amount in cash	1 Crore	2	2	2	2
195	Income of Investment made by an NRI	-	-	20	-	20
195	Long-term capital gain - Under Section - 115E/ 112(1)(c)(iii)/112A - Any Other Gains	-	- -	10 20	- -	10 20
195	Short-term capital gain - 111A	-	-	15	-	15
195	Royalty	-	-	10	-	10
195	Fees for technical services	-	-	10	-	10
195	Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)	-	-	20	-	20
195	Any Other Income - Other than Company - Company	-	- -	30 40	- -	30 40
196A	Income in respect – - of units of a Mutual Fund specified under clause (23D) of section 10; or - from the specified company referred to in the Explanation to clause (35) of section 10	-	-	20	-	20

* TDS rate shall be increased by applicable surcharge and Health & Education Cess.

Note: In case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at a normal rate or 20% (5% in case of section 194-O), whichever is higher.

TCS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

Note: In case of non-furnishing of PAN/Aadhaar by collectee, TCS will be charged at twice of the normal rate applicable or 5% {1% in case of sale of any goods (given in the last point) of the value exceeding 50 Lacs}, whichever is higher.

In case you are confused about TDS Return Filing, feel free to consult the experts at Wealthcafe.

Uncategorized - 10/29/2021

Professional tax

If you ever pay close attention to your payslips, you will notice that there is a deduction every month under the category of ‘Professional Tax’. This deduction takes place along with HRA, basic salary, and conveyance charges (if applicable). This deduction is generally to the tune of INR 200 per month or so and is called the professional tax. This tax is generally different for each state and in certain places you may notice that there is no deduction made under this heading. So the question is, what is professional tax?

What is Professional Tax?

Profession Tax is a direct tax that is levied on persons earning an income by way of either practicing a profession, employment, calling, or trade. Unlike income tax which is levied by the Central Government, professional tax is levied by the government of a state or union territory in India. The majority but not all of the Indian states impose professional tax. While states like Karnataka and Maharashtra have professional taxes, there is no such tax applicable in Delhi and Haryana. The tax calculation and amount collected may vary from one state to another, but it has a maximum limit of INR 2500/- per year.

Professional Tax Registration and Returns

Professional Tax Registration is mandatory within 30 days of employing staff in a business or, in the case of professionals, 30 days from the start of the practice. Professional tax needs to be deducted from the salary or wages paid amount. Application for the Registration Certificate should be made to the assessee’s state tax department within 30 days of employing staff for his business. If the assessee has more than one place of work, then the application should be made separately to each authority with respect to the place of work under the jurisdiction of that authority.

If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter).

Exemptions

There are exemptions provided for certain individuals to pay Professional Tax under the Professional Tax Rules.

The following individuals are exempted to pay Professional Tax:

Parents of children with permanent disability or mental disability.
Members of the forces as defined in the Army Act, 1950, the Air Force Act, 1950, and the Navy Act, 1957 including members of auxiliary forces or reservists, serving in the state.
Badli workers in the textile industry.
An individual suffering from a permanent physical disability (including blindness).
Women exclusively engaged as agents under the Mahila Pradhan Kshetriya Bachat Yojana or Director of Small Savings.
Parents or guardians of individuals suffering from a mental disability.
Individuals, above 65 years of age.

Who is Responsible for Deducting Professional Tax?

The employer is responsible for deducting professional tax from the salaries of his employees and paying the amount collected to the appropriate state government. An employer has to furnish a return to the tax department in the prescribed form within the specified time along with proof of tax payment.

Consequences

Fails to Get Registration

He will be liable to a penalty for the period during which he remains unregistered.

Fails to Deposit to the Government/ Late Deposition

He will be liable to a penalty for the period during which he remains unregistered.

Non-Deposition of Amount.

The officials have the power to recover such amount along with applicable penalty and interest from the assets of such defaulters. Moreover, they can attach his bank account also. In serious cases, prosecution cases also can be filed.

Wealthcafe Advice

People need to understand the professional tax being levied in their state and plan since there are penalties in store for defaulters. Regardless of whether an individual is engaged full-time with an organization or not, they need to be aware of the professional tax liabilities in their state.

Uncategorized - 10/29/2021

National Pension System – FAQs

Ques 1. Who can join NPS?

Ans. Any Indian citizen between 18 and 60 years can join NPS. The only condition is that the person must comply with know your customer (KYC) norms.

Ques 2. Is saving with the National Pension System allowed for an NRI?

Ans. Yes, an NRI can join NPS. However, the account will be closed if there is a change in the citizenship status of the NRI.

Ques 3. What are the documents needed for opening an NPS account?

Ans. You should fill the subscriber registration form and submit it along with proof of identity, address, and date of birth to the POP

Ques 4. Can an individual invest in more than one National Pension Scheme?

Ans. No, the scheme comes with a unique PRAN for each individual and thus does not allow multiple accounts for a single person. In fact, there is no need to open a second account as NPS is portable across sectors and locations.

Ques 5. What is a Permanent Retirement Account Number (PRAN)?

Ans. Every NPS subscriber is issued a card with a 12-digit unique number called Permanent Retirement Account Number or PRAN.

Ques 6. How do I join NPS?

Ans. You should open an NPS account with entities known as Point of Presence (POP). Most banks, both private and public sector, are enrolled as POPs. Several financial institutions also act as POPs. The authorized branches of a POP called point of presence service providers (POP-SPs), act as the collection points.

Ques 7. How would I know if my bank serves as a PoP for the scheme or not?

Ans. You can check the list of authorized PoPs at NPS’s official website to confirm whether your bank serves as a PoP or not. https://www.npscra.nsdl.co.in/pop-sp.php

Ques 8. What is the minimum contribution in NPS?

Ans. You have to contribute a minimum of Rs 6,000 to your Tier-I account in a financial year.

Ques 9. What will happen if I don’t make the minimum contribution?

Ans. If you do not contribute the minimum amount, your account will be frozen. You can unfreeze the account by visiting the POP and pay the minimum required amount and a penalty of Rs 100.

Ques 10. Will the government also contribute to my NPS account?

Ans. No, the government will not contribute to your NPS account.

Ques 11. Who manages the money invested in NPS?

Ans. The money invested in NPS is managed by PFRDA-registered Pension Fund Managers. At the moment, there are eight pension fund managers: ICICI Prudential Pension Fund, LIC Pension Fund, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund, UTI Retirement Solutions Pension Fund, HDFC Pension Management Company, and DSP BlackRock Pension Fund Managers.

Ques 12. What are the investment choices available in NPS?

Ans. The National Pension System or NPS offers two choices:

1) Active Choice: This option allows the investor to decide how the money should be invested in different assets.

2) Auto choice or lifecycle fund: This is the default option that invests money automatically in line with the age of the subscriber.

Ques 13. What are the investment options available under Active Choice?

Ans. The Active Choice offers three funds or investment options: Asset Class E (invests 50 percent in stocks); Asset Class C (invests in fixed income instruments other than government securities); Asset Class G (invests only in government securities). An investor can choose one of these funds or opt for a combination of them.

Ques 14. Can I change my investment choices?

Ans. Yes, you can change your investment choices once in a financial year for both Tier-I and Tier-II accounts.

Ques 15. Can I change my scheme and pension, fund managers?

Ans. Yes, you can change your scheme preference and pension fund manager. You can even change your investment option (active and auto choices).

Ques 16. What are Tier-I and Tier-II accounts?

Ans. NPS offers two accounts: Tier-I and Tier-II accounts. Tier-I is a mandatory account and Tier-II is voluntary. The big difference between the two is the withdrawal of money invested in them. You cannot withdraw the entire money from the Tier-I account till your retirement. Even on retirement, there are restrictions on withdrawal on the Tier-I account. The subscriber is free to withdraw the entire money from the Tier-II account.

Ques 17. Can I have different pension fund managers and investment option for Tier I and Tier II account?

Ans. Yes, you can select different pension fund managers and investment options for your NPS Tier I and Tier II accounts.

Ques 18. What are the tax benefits available for NPS?

Ans. An employee’s contribution is eligible for a tax deduction --up to 10 percent of the salary (basic plus DA) – under Section 80CCD(1) of the Income Tax Act within the overall ceiling of Rs 1.5 lakh allowed under Section 80C and Section 80CCE.

The employer’s contribution to NPS is exempted under Section 80CCD (2).

Moreover, individuals can claim an additional deduction of up to Rs 50,000 under Section 80CCD (1B), which is in addition to Rs 1.5 lakh permitted under Section 80C.

A self-employed person can also contribute 10 percent of his gross income under Section 80CCD (1) in NPS.

Ques 19. When can I withdraw money from NPS?

Ans. NPS is a pension product. So, you are expected to stay invested until your retirement. At 60, you must use at least 40 percent of the corpus to buy an annuity income from a PFRDA-listed insurance company. You have the option to withdraw 60 percent of the corpus tax-free.

Ques20. Can I defer withdrawing the lump sum amount at 60?

Ans. Yes, you can defer withdrawing the lump sum amount in NPS until you are 70 years old.

Ques 21. What if I want to take the money out when I am 60?

Ans. If you are getting out of the scheme before you are 60 years old, you can only withdraw 20 percent of the accumulated corpus in NPS. You must use 80 percent of the corpus to buy an annuity.

Ques 22. What happens to the money if I discontinue the scheme?

Ans. If you discontinue your investment, your account will be frozen. You can reactivate the account only if you make the minimum contribution required along with the penalty.

Ques 23. What happens if the subscriber dies before 60 years?

Ans. If the subscriber dies before 60 years, the entire accumulated wealth would be paid to the nominee/legal heir of the subscriber.

Ques 24. How do I withdraw the money from NPS?

Ans. You will have to submit the withdrawal application to the POP along with relevant documents. POP would authenticate the documents and forward them to the Central Record-keeping Agency (CRA) and NSDL. CRA would register your claim and forward you the application form along with details of documents that need to be submitted. Once you complete the necessary procedure, CRA processes the application and settles the account.

Ques 25. What are the documents to be submitted along with withdrawal forms?

Ans. You have to submit the following documents along with the withdrawal forms:

PRAN card (original)
Attested copy of proof of identity
Attested copy of proof of address
A canceled cheque

You can also read the following articles to learn more about NPS:

Uncategorized - 10/29/2021

How to apply for NPS?

The NPS or the National Pension System (NPS) is a voluntary retirement scheme set up by the government through which you can save for your old age pension or create a retirement corpus.

The Process to Register for the National Pensions Scheme

Individuals can register and obtain a subscription to the National Pension System through the online platform eNPS. Registration for the scheme can be done in the following steps.

Step 1 – Go to the eNPS portal available at the official website of the National Pension System.

Step 2 – Choose your subscriber type from the available options ‘Individual Subscriber’ and ‘Corporate Subscriber’.

Step 3 – Choose your suitable residential status. The options include ‘Citizen of India’ and ‘NRI’.

Step 4 – Opt for either Tier I account type or both accounts as a choice of the former is mandatory for long-term savings.

Step 5 – Enter your PAN details and select a suitable bank or PoP. It is ideal to choose a PoP with whom you have an existing relationship such as a savings/current/Demat/account for KYC verification as the chosen PoP will do it.

Step 6 – Upload the scanned copy of your PAN card along with a canceled cheque. The image format should be in .jpg, .jpeg, or .png format with a file size of 4KB to 2MB.

Step 7 – Next, upload your scanned photograph and signature in the same format and size as above.

Step 8 – Once routed to the payment gateway, proceed to pay the required charges via net Banking.

Step 9 – With the completion of payment, your Permanent Retirement Account Number will be generated.

While this was the process of completing PRAN generation for all subscribers, NRIs need to complete a few additional steps as follows.

Choose the status of the bank account, i.e., either repatriable or non-repatriable.

Provide the details of the NRO or NRE bank account along with the passport’s scanned copy.

Choose a suitable communication address, i.e. either permanent or overseas address. Note that communication to the latter attracts additional charges.

Once the PRAN is allotted, an applicant needs to proceed with either of the following steps for authentication.

E-Sign option for authentication

On the E-sign/Print & Courier page, choose the E-sign option.

Authenticate with OTP sent to the mobile number registered with your Aadhaar card.

After the Aadhaar authentication, the registration form is signed successfully, and you do not need to send its physical copy.

Note that service charges are applicable for e-signing your registration form. However, if you are unable to complete the online authentication process, you can opt for the alternative option given below.

Authentication via print and courier

To proceed with this authentication process, you need to select the Print & Courier option on the initial page.

Next, print the form available on the page, paste the photograph and sign in the dedicated signature block.

Send the form within 30 days of PRAN allotment to the address given below. Not doing so will result in temporary freezing of the PRAN.

Address for sending the authentication form –

Central Recordkeeping Agency (eNPS)

NSDL e-Governance Infrastructure Limited,

1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg,

Lower Parel, Mumbai – 400 013

Uncategorized - 10/29/2021

NPS: National Pension Scheme

Retirement is a time when you can finally unwind and realize your long-held ambitions. However, if you are financially unprepared, it can be a difficult time.

The National Pension System (NPS) is financial security and stability during old age when people don't have a regular source of income. It is offered by the government under a retirement cum pension scheme. The investors get the dual benefit of tax-saving and retirement planning, by investing in it. It provides a benefit to individuals by way of a deduction under Section 80C.

It not only secures your retirement planning but also saves taxes of up to Rs 2,00,000 a year. Both private and government employees can invest in NPS. The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a few changes in NPS.

NPS offers two categories of accounts as of now:

Tier 1 Account: Meant for retirement savings for govt and private sector employees along with other Indian citizens
Tier 2 Account: Meant for general investment

When you want to invest in NPS, you first need to open an account under Tier I before you can consider opening the Tier II account.

Tier I and Tier II NPS
	Tier I	Tier II
Eligibility	Any Indian citizen between 18 & 65 years of age	Members of Tier I only
Lock-in	Till the age of 60 years	Nil
Minimum number of contributions in year	1	Nil, you can choose not to make any contribution in a year
Minimum contribution for account opening	Rs 500	Rs 1,000
Minimum amount for subsequent contribution	Rs 500	Rs 250
Minimum number of annual contributions	1	Not mandatory
Fund management charge	Charges are the same for both Tier I and Tier II accounts
Available asset classes	Same for both Equity (E): Scheme invests predominantly in Equity market instruments. Corporate Debt (C): Scheme invests in Bonds issued by Public Sector Undertakings (PSUs), Public Financial Institutions (PFIs), Infrastructure Companies and Money Market Instruments Government Securities (G): Scheme invests in Securities issued by Central Government, State Governments and Money Market Instruments Alternative Investment Funds (A): In this asset class, investments are being made in instruments like CMBS, REITS, AIFs, etc.
Tax benefits on the contribution	Contribution to NPS Tier I qualifies for tax deduction under Section 80C up to Rs 1.5 lakh. Tax deduction is available under Section 80CCD (1B) up to Rs 50,000 in addition to Section 80C benefits.	No tax benefit
Taxation on withdrawal	At maturity, the entire corpus is tax-exempt	The entire corpus can be withdrawn, which is added to income and taxed as per the tax slab one falls in

Therefore, If you want to enjoy your retirement days without having to worry about your expenses, it is advisable to invest in the NPS. By investing early, you can prepare for a hassle-free and peaceful retirement life.

Wealth cafe advice

If you are concerned about your retirement and want to ensure a decent monthly income, then you should opt for NPS. It is an easily accessible, low-cost, tax-efficient, flexible, and portable retirement saving account.

Uncategorized - 10/29/2021

How to correct/update Bank details in EPF/UAN online?

The EPFO Online member portal allows a host of services to its members to access, that range from checking their passbook, tracking their EPF fund, transferring their claim online, and a lot more. One such facility that EPF members can avail of is updating their bank details via the UAN portal.

Here are a few simple and easy steps on how to change your EPF Bank details online.

Log on to the official EPFO portal.
Use your UAN login id and password.
Go to the menu section.
Now click the “MANAGE” button.
From the drop-down, click “KYC”.
You will be taken to another landing page.
Now select the “BANK” option.

You can see these options: Document Number (Bank Account Number)
Name as per Document (Name On Bank Account)
IFSC Code

Fill in the required details.
Press the save button.

Once you have made the changes, your online service will show KYC Pending For Approval. This means that you will have to submit the proof of your updated bank details to your employer. Once your employer approves your KYC update request, your new bank account will be added/replaced. A message regarding this will also be conveyed through your registered mobile number.

Wealthcafe Advice:

You are no longer dependent on your employer or your ex-employer to update the details or exit date on the EPFO portal. Linking your Aadhar is mandatory as well as it is crucial to mark your date of exit correctly. Follow the simple steps stated above and you will be able to update your EPF account easily.

Uncategorized - 10/29/2021

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