Transfer EPF Fund to NPS : The Pension Fund Regulatory and Development Authority (PFRDA) allows subscribers to transfer their funds from the Employees Provident Fund (EPF) to the National Pension System (NPS) with certain conditions. National pension system is becoming a very popular option for retirement planning in the long term. Due to the option of investing in equity, in the long run, investors can get higher returns through NPS than EPF. At the same time, this power income tax benefit is also available. In such a situation, it should be known that how a subscriber can transfer his fund from EVF to NPS.
First understand the benefits
Due to exposure to equity, through long term NPS, returns can be higher than EPF. If you look at the inflation rate, after a time, after retirement someone will need a lot of funds. In such a situation, NPS can be a better option for long term goals.
Under Section 80C of the Income Tax Act, you can avail deduction of up to Rs 1.5 lakh. Second thing is that now it has come in the EEE category. That is, there is no income tax on the money received on investment, interest and maturity. Apart from this, you can avail additional deduction of up to Rs 50,000 under Section 80 CCD (1B). If you want more return on the funds being added for your retirement then you can transfer your EPF to NPS.
How to transfer EPF funds to NPS
If you want to transfer your EPF funds to NPS, then you must have an active Tier-1 account of NPS. Alternatively, you can open your NPS account by going to Point of Presence (POP) or e-NPS portal. To open an NPS account, you can go to npstrust.org.in.
After opening NPS account, the transfer form has to be submitted with the employer.
After receiving the application, EPFO will trigger transfer of balance in EPF account. A check or draft will be issued by the retirement body on behalf of NPS nodal office or POP.
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Once the fund is deposited, the NPS account will be updated and you will get a verification alert for the same on your mobile number registered with NPS. After this, the nodal office or POP will update the money in the Tier-1 account of the employee.
Source: www.financialexpress.com