Regulatory Charges Explained
In an era where financial transparency is vital, we understand the importance of being open and clear about regulatory charges. At PensionBox, we commit to providing a precise breakdown of fees, ensuring our users have a complete understanding of their financial contributions.
To begin with, we don’t impose any regulatory charges while planning and tracking PF, FD, EPF, or an existing NPS account. Meanwhile, let’s understand the regulatory charges imposed when our users invest in NPS or any pension products.
Account Opening Charges-
No regulatory charges are incurred when opening a PensionBox account.
Platform Charges-
No regulatory charges are incurred when planning your retirement & tracking your savings on an existing NPS account.
Withdraw Charges-
There are no regulatory fees associated with the withdrawal process.
Transaction Charges-
Regulatory charges applied while starting SIP or one-time contribution, the breakdown would be as:
Let’s assume the contribution amount to be: ₹10,000
Then the regulatory charges will be levied as such,
Processing fee charged : ₹30 or 0.25% of contribution i.e. ₹10,000 = ₹30
= Hence, ₹30 is applicable in this case.
GST (18%): SGST 9% of ₹30 = ₹2.7 + CGST 9% of ₹30 = ₹2.7
= 18% of ₹30 will be ₹5.4
Hence, the total amount payable will be: ₹10,035.4
NPS Account Opening Charges-
Talking specifically about NPS Tier I Account, there are certain regulatory fees associated with it:
One-time account opening fees (will not be charged again): ₹200
Processing fees: 0.25% of the contribution amount or ₹30, whichever is higher
Additionally, a GST of 18% is levied on these fees.
Charges applicable for NPS Tier II Account:
- For opening the account, no regulatory charges are applicable.
- Other regulatory charges while contributing include 18% GST (SGST 9% + CGST 9%) and a processing fee of Rs.30 or 0.25% of the contribution amount, whichever is higher.
Support Charges for PF Assistance Requests:
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Support for PF-related requests involves regulatory charges based on the type of request raised (such as data correction, merger, or withdrawal).
For example, if the PF withdrawal fee is ₹2000, a GST charge of 18% applies as per the regulations. Once the issue is resolved, you'll receive an impressive 50% discount from us on the original cost of the PF service as requested.
:- Please note that this breakdown simplifies the regulatory charges associated with various operations related to NPS accounts, PF requests, and other financial transactions.
Our Transparency Policy:
Our commitment to transparency extends beyond the initial contribution, as we aim to empower our users with a detailed understanding of their financial contributions with us. While our base fees are transparent, it is essential to highlight potential regulatory charges.
We believe that transparency builds trust. We want our users to feel confident and informed about the financial contributions they make to us. To achieve this, we have described ensuring all the regulatory charges are clearly communicated and quite understandable.
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PensionBox simplifies the National Pension System(NPS), the government's pension scheme for private employees both for retail users and HRs/companies.
If you don’t have an NPS account, you can simply open your pension account within 2 minutes and if you have NPS PRAN already, you will be able track, invest and manage everything free of charge with best user experience.
We never touch or hold your money directly, your investments go safely to your chosen pension fund through approved channels.
We are built with Zerodha as POP , ensuring transparency, data security, and peace of mind. Your retirement savings are protected by regulation and secured by technology.
That’s why, PensionBox brings transparency, zero charges, timely support and freedom to select any pension fund so that you get the best experience investing in NPS & be better future ready.
That’s not it, we help you & your company together to maximise contribution and tax savings with minimal charges & best user experience.
If you are an existing zerodha user then you get a fast login or sign up using kite ID.
Once you are onboarded with kite ID, you get free access to
- Open NPS in 2 minutes
- Track existing NPS
- POP shift or CRA shifting
- Invest in one time or create SIP in NPS
- Withdraw NPS requests & instant withdraw tier 2
- Create your dream retirement plan
- Open NPS Vatsalya for your kid
- Share with HR (To unlock more tax benefits)
- Employer Contribution:
- Contributions made by your employer to your NPS account are tax-free up to 14% of your basic salary under Section 80CCD(2). Do connect us with your HR to enable this for you.
Tax Benefits in Old Tax Regime - Self-Contribution:
- Deduction up to ₹1.5 lakh under Section 80C.
- Additional deduction of ₹50,000 under Section 80CCD(1B) — exclusive to NPS investments!
- This allows you to claim a total deduction of up to ₹2 lakh every year on your NPS contributions.
- Employer Contribution:
- Contributions made by your employer to your NPS account are tax-free up to 10% of your basic salary (Basic + DA) under Section 80CCD(2). Do connect us with your HR to enable this for you.
- This is over and above your personal deduction limits, giving you extra tax efficiency.
Feel free to book a free call to learn more about NPS, NPS Vatsalya, Corporate NPS & PensionBox or contact the support team.
