Contribution to National Pension Scheme (NPS)

NPS is a unit linked defined contribution based Pension Scheme launched by Government of India. The
scheme ensures that 10% of your basic salary is eligible for tax saving under section 80 CCD (2) of the
income tax act. (Additional benefit over and above 1Lac limit prescribed in section 80 C)
The company has decided to contribute 10% of your Basic salary as its contribution towards NPS scheme.
In case, you feel that the company should not contribute / contribute at a lesser rate please update the
NPS & RFB form. The lesser contribution to NPS will be allocated under RFB. Enrollment would open
once in a year. The employees can select the fund, pension manager and annuity provider at the time of
registration.
NPS is a part of your CTC and there will be no additional cost borne by the company on administration of the
scheme.
A brief description on RFB:
The RFB is an annual component for a given financial year that you can claim any time during the
year, as often as claiming parts of it once a month or even once right at the end of the financial year.
The amount is mentioned as an annual component since we do not impose any timelines on your
claiming the money as well as there is no limit on how much you can claim in any given month, only
annual limits.
Allocation of the RFB component (within the claimable maximum limit) can be done as per your choice
through an online form that you will receive upon joining. The RFB component can be claimed under the
following items (on submission of actuals)

> Medical Bills

> Cell Phone Bills
> Landline Phone Bills
> LTA claims
> Car or Two-wheeler expenses

Car owned by the employee - The car should be registered in the name of the staff
member. Photocopy of blue book/registration certificate/ smart card has to be submitted
to accounts dept. Limit is 21600/- p.a.

Car taken through company lease scheme - Copy of the expense bills are to be submitted
along with the print-out of the entitlement voucher

Children education allowance: You can claim tax benefit up to INR 1200/child every year under this
allowance

Voluntary provident fund (VPF): You can also save and get benefit under Section 80 C by putting
aside a part of your salary as VPF, which can be up to 100% (including employee contribution to PF) of
your basic salary. Total exemption under section 80C, including VPF, cant exceed INR 1,50,000 per year
Tax Implication:

Any amount of your RFB you choose not to claim as reimbursement will get paid out with your
monthly salary as a taxable amount.

The part of your RFB that you allocated under the above options and claimed through
submission of bills would be tax-free and the remaining unclaimed amount will be paid out as
taxable amount.