Achieve A Win-Win For Company And Employees With Corporate NPS
The NPS or the National Pension System, is the best way to financially secure your retirement years while enjoying unmatched tax benefits. While every Indian is qualified to become a member of the National Pension System, there is an added benefit if one opts for Corporate NPS. Floatr encourages corporates and individuals alike to synergise and invest in the NPS, achieving financial goals and significant benefits on both sides.
Corporate NPS works exactly like the National Pension System, started by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) but with added benefits for the company and the individual. Here is how it works:
As a Corporate, you make a contribution up to 10% of the employees’ basic salary. This does not increase CTC for the company as the contribution is a deduction like PF.
As employees, you contribute regularly to your own, unique pension account. (Each subscriber is allowed only 1 NPS account).
You can choose which asset(s) you want to invest in NPS - equities, government bonds, corporate debt and alternate investment funds based on financial goals.
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Win Happiness For All Stakeholders - Initiate Corporate NPS
Benefits of NPS Account for Employer
With corporate NPS, you can help your employees make better financial decisions for their retirement without ANY overhead costs! And happier employees definitely will boost the company’s productivity and output.
ZERO Cost to Company - Apart from ZERO setup costs, ZERO operation costs and ZERO maintenance costs, the company also enjoys tax exemption under section 36(1).
No Account Obligation - Being just a facilitator, the company has no returns to file for this. You simply have to define the percentage of basic and a frequency of contribution.
Easy-to-use Portal - The Corporate NPS portal is easy to navigate, onboard new employees and make contributions.
Wellness and Retention - The company becomes an active participant in the employees’ financial wellness and also saves additional tax for them.
Benefits of NPS Account for Employees
With corporate NPS, you can achieve multiple benefits with a single plan as an employee. There are six biggest benefits that you get when you enrol under corporate NPS.
Subscribe to a standard and simple product regulated by PFRDA
Carry your account with a unique PRAN across employers, locations and years.
Choose your fund manager, investment options & annuity options with great flexibility.
Get the most economical and lowest cost investment product in the market.
Cultivate financial discipline through a compulsory monthly contribution to your nest egg.
Achieve multiple tax benefits under sections 80CCD(1), 80CCD(1B) & 80CCD(2)
Benefit From Additional Tax Advantages in Both Old & New Tax Regimes
When you use the corporate route to invest in NPS, you get an additional taxation benefit, over and above the existing benefits in the old tax regime. Apart from the INR 1.5 Lakhs under section 80 CCD(1) and INR 50,000 under section 80 CCD(1B) of self contribution, you get additional tax exemption under section 80 CCD(2) for the entire amount contributed by the company (10% of Basic + DA).
If you have chosen to invest in the NPS scheme online and are in the new tax regime, then also you benefit. It is a known fact that the new tax regime does not offer any deductions. However, under section 80 CCD(2), you can avail a deduction for the entire amount contributed by the company (10% of Basic + DA)!
In both these cases, this is an additional benefit over the NPS contributions being E-E-E (exempted from taxation for investment, interest and maturity amount).
5 Simple Steps of Corporate Onboarding to NPS
Any company registered in India can participate in and benefit from the corporate NPS option. The following steps show how simple and straightforward the process is for the corporate and the employee.
Submit the required corporate registration forms along with corporate KYC documents prescribed by PFRDA.
A unique registration number is created for each legal entity/company within 4-5 days of application.
Roll out NPS for employees and they start creating their NPS account under the Corporate model.
Employees already subscribed to the NPS need to map their account to the Corporate.
NPS contribution is done by Corporate every month with payroll.
‘KYC’ - Know Your Contributions and Added Benefits
At Floatr, we always strive to completely educate our patrons so that they can maximise their benefits and returns on investments. As you experience the convenience of disciplined investing from your homes with modern technology, know how Floatr helps you maximise the impact of your contributions when you invest in NPS.
Floatr offers you the opportunity to ‘SIP’ and grow your money steadily over time, contributing a fixed sum on a regular basis, enjoying multiple benefits or Rupee cost averaging, contribution flexibility and disciplined investing.
Floatr facilitates you to make unlimited contributions to your nest egg without any limit.
Floatr will help you in premature withdrawals and exit from the NPS if you meet certain specified conditions.
Get NPS for Employees. Ease The Tax Burden and Secure their Retirement
With the backing of an empathetic company and a trusted partner like Floatr, it’s time to embark on the corporate NPS journey. Just reach our sales team to get started within a week.
What are you waiting for? Contact Floatr today to onboard your Company!
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