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 Tax Reporting Unit (TRU) for the National Pension Scheme (NPS).

To set up the TRU for the National Pension Scheme (NPS) component:
Navigation: Manage Implementation Project List > Manage Legal Reporting Unit HCM Information
  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. On the Manage Legal Reporting Unit HCM Information page, select the National Pension Scheme TRU and click Apply and Go To Task.
  3. Edit the TRU of type NPS by selecting the Correct mode.
  4. For TRU of type NPS, click National Pension Scheme and enter the required information:
    Field Description

    Corporate Registration Number

    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

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

    Select the organization type such as:

    • 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 in section 80 CCD (2) which is over and above the limit of Rs.1.5lac provided in section 80 CCE.

    • For state government and private sector employees - Eligible for tax deduction up to 10% of Salary (Basic + DA) contributed by employer in section 80 CCD (2) which is over and above the limit of Rs.1.5lac provided in 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) in section 80 CCD (1), within the overall ceiling of Rs.1.5lac in section 80 CCE.
    POP Name

    The Point of Presence service provider name.

    POP Address

    The Point of Presence service provider address.

  5. Submit the NPS TRU details.