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How To Transfer EPF Into NPS Account?

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For the retirement planning, NPS is a good bet given the option in the financial instrument to invest in equity which can enable an investor to earn more in the long run. Further, as an income tax benefit, you are allowed a deduction under section 80C for NPS investment up to the extent of Rs. 1.5 lakh in a financial year. Also, an additional deduction of up to Rs. 50,000 under Section 80CCD (1B) can be availed.

 

How To Transfer EPF Into NPS Account?

Further, the NPS investment has come under the ambit of 'EEE' category of investment, which means now contribution made towards NPS, interest accrued as well as proceeds realized in case of maturity are all tax exempt.

And hence, if you want to grow your retirement kitty, you can consider transferring your EPF or employee provident fund balance to the NPS. Here is detailed the process:

Process to transfer EPF

For you to transfer your EPF funds to the National Pension Scheme, you must be maintaining an active Tier I NPS account. The same can be opened through your employer if it is applicable there. Also, the same can be opened on your own by visiting the e-NPS portal or Point of presence terminal. An individual can also visit the npstrust.org.in portal to open an NPS account.

After your NPS account is opened, you need to apply for EPF transfer with your current employer into your NPS account. Post receiving your application for the transfer, the fund will begin transferring your PF money into the NPS account. Thereafter, a demand draft or cheque will be issued in the name of the PoP collection account in case of employees of the private sector, while for government employees it will be opened in the name of NPS nodal office.

Through a letter, the provident fund will keep the employer informed that this particular amount of the EPF account holder is being transferred to his or her tier-I NPS account. Subsequent to this the point of presence terminal or the nodal office, whichever has received a cheque or draft from the provident fund will transfer the money into the concerned person's Tier-I NPS account.

 

GoodReturns.in

Read more about: epf nps provident fund
Story first published: Monday, February 4, 2019, 16:42 [IST]
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