How to Access ePRAN Through DigiLocker?

The National Pension Scheme (NPS) has emerged as a viable option for those looking for a low-cost investing opportunity while also saving significantly through tax deductions. The benefits, interest rates, and easy-to-manage online portal of the government-backed retirement scheme have encouraged subscribers to secure their post-retirement life. The NPS has the lowest management costs of any pension programme, with both Tier 1 and Tier 2 options. Because account maintenance is minimal, the benefit of accumulated pension wealth to the subscriber grows.

Permanent Retirement Account Number (PRAN)

A Permanent Retirement Account Number (PRAN) is generated as soon as you open an account with the National Pension Scheme (NPS). It is recommended and necessary for the subscriber to keep this unique number safe because it will remain with the subscriber throughout his lifetime. When your application is approved, a physical copy of the PRAN card, along with other documents, is mailed to the address you provided when you opened the account. There is, however, the option to download a soft copy of the crucial number. In fact, it is always recommended that you download a soft copy of your card to avoid problems later on if the physical card is damaged or lost.

Here's is how to do it through DigiLocker

1) Navigate to DigiLocker (https://www.digilocker.gov.in/).

2) Log in with your registered mobile number or Aadhar Card.

3) Enter your 6-digit security code.

4) A 6-digit OTP will be sent to the registered mobile phone number. Fill out the OTP and submit it.

5) On the left, there is a 'Search Documents' option; click on it.

7) Select PFRDA from the central government drop-down menu (Protean)

8) The page will redirect to the ePRAN Card. Keep your PRAN close at hand.

9) Simply enter all of your information, including your unique number, and click Get Document.

10) You will receive the document, which you can also view in the Issued Documents section.

NPS Interest Rate

The NPS interest rate typically ranges between 9% and 12% p.a.

Income tax benefits

Employees who contribute to NPS are eligible for a tax deduction of up to 10% of their salary (Basic + DA) under Section 80 CCD(1), subject to a total limit of Rs. 1.50 lakh under Section 80CCC.

Employer contributions to an employee's NPS account are tax deductible up to 10% of salary (Basic + DA) (14% if made by the Central Government) contributed by the employer under Section 80 CCD(2) above the Rs. 1.50 lakh limit provided by Section 80 CCE.

The low fund management charge gives NPS an advantage over other retirement schemes. Furthermore, countries all over the world are experiencing higher inflation as the pandemic fades and as a result of geopolitical situations.As a result, it is possible to conclude that NPS could be extremely beneficial in terms of building a retirement corpus over time.