1. Implementing Payroll for India
  2. Set Up Tax Reporting Unit for National Pension Scheme

Set Up Tax Reporting Unit for National Pension Scheme

Use the Manage Legal Reporting Unit HCM Information task to set up the TRU for the National Pension Scheme.

To set up the tax reporting unit for the National Pension Scheme (NPS) component:

  1. Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting Unit, as described in previous tasks.

  2. Select Manage Legal Reporting Unit HCM Information in the implementation project task list.

  3. On the Manage Legal Reporting Unit HCM Information page, select the National Pension Scheme TRU and click Apply and Go To Task.

  4. On the Tax Reporting Unit Details page, select Correct option under Edit.

  5. For TRU of type National Pension Scheme, click National Pension Scheme and enter the required information.

    1. In the National Pension Scheme Organization Information, complete the fields as shown:

    2. Field Description

      Corporate Registration Number

      Enter the 7 digit registration number allotted by CRA to a corporate head office at the time of registration the corporate registration number.

      Corporate Branch Office Number

      Specify the 7 digit number allotted by CRA to a corporate branch office.
      Organization Type

      Select the organization type from the list:

      • Central government sector

      • State government sector

      • Corporate sector.
      NPS Employer Contribution Percentage

      Specify the employer contribution percentage to NPS

      • For central government employees: Eligible for tax deduction up to 14% of salary (Basic + DA) contributed by employer under section 80 CCD (2) which is over and above the limit of Rs.1.5lac provided under section 80 CCE.

      • For state government and private sector employees - Eligible for tax deduction up to 10% of Salary (Basic + DA) contributed by employer under section 80 CCD (2) which is over and above the limit of Rs.1.5lac provided under section 80 CCE.
      NPS Employee Contribution Percentage

      Specify the employee contribution percentage to NPS.

      Employees contributing to NPS are eligible for tax deduction up to 10% of salary (basic + DA) under section 80 CCD (1) within the overall ceiling of Rs.1.5lac under section 80 CCE.
      POP Name

      Enter the Point of Presence service provider name.

      POP Address

      Enter the Point of Presence service provider address.

    3. Click Submit.