NPS Statement Download: How to Download NPS Statements for Tax Returns?

The National Pension Scheme (NPS) was launched with the aim of helping people during their retirement years. This scheme lets people create a pension fund that provides a steady income after retirement. Another noticeable feature is its tax benefits. 

Not only can you avail up to Rs. 1.5 lakh in tax deductions under Section 80C, but you can also get additional deductions of up to Rs. 50,000 for your investment. However, to avail these lucrative tax savings, you need to provide proof in the form of an NPS statement. 

Continue reading this blog to learn the process of NPS statement downloads via several digital platforms, its importance and more.

What Is an NPS Transaction Statement?

The National Pension Scheme (NPS) is a regulated retirement scheme in India. In 2004, the Pension Fund Regulatory and Development Authority (PFRDA) launched this scheme for government employees. Later, this scheme was made available to everyone, including NRIs. During the respective years of employment, an account holder can contribute to their pension account and avail a regular income after retirement.

The NPS transaction statement is a document representing various transactions that have taken place in your retirement account. It consists of investment details, a summary of investment, account management, redemption details, and transaction details. The statement acts as proof of income required to avail of tax benefits under the NPS. 

The ‘Transaction’ section includes details of your contribution amount, allotted units, and NAV. It also provides transaction details with respective dates. The units for which money is deducted for rectification and redemption are also included here. The information is then categorised based on the date of posting a transaction of the respective PRAN account. 

Importance of NPS Statements for Tax Return Purposes

NPS statements are essential for NPS subscribers to avail of tax benefits under Section 80C, with a ceiling of Rs. 1.5 lakhs under Section 80CCE. Tier I account holders under subsection 80CCD (1B) can claim an additional deduction for investments of up to Rs. 50,000, which is over and above the deduction amount of Rs. 1.5 lakhs under Section 80C. 

Apart from this, there are certain other tax benefits available under Section 80CCD of NPS:

• Tax Benefits on Partial Withdrawal: If you have a specific purpose, you are eligible to withdraw from an NPS Tier I account partially, i.e., up to 25% of the withdrawal is tax-exempt.
• Tax Benefits on Lump Sum Withdrawal: If you withdraw up to 60% of the total amount in a lump sum, it is exempted from taxes.
• Tax Benefits on Annuity Purchase: The investment amount for purchasing an annuity plan is exempted totally from taxes. However, annuity income received in subsequent years is subjected to income taxes.

What Is the Password to Open an NPS Statement?

Every NPS statement downloaded from the official website is password-protected. To view your transaction statement, you need to enter the default password.

The password consists of two parts in eight characters. In the first part of your password, enter the first four letters of your first name in lowercase. However, if your first name has less than four characters, add '9' to convert it into four digital characters. 

The second part of this password contains the month and date of birth following the DDMM format, according to NPS guidelines. 

How to Download NPS Statements for Tax Returns?

To avail tax deduction for each financial year, the subscriber must submit the transaction statement as proof. Logging into the NPS account, you can download your NPS statement receipt. 

Here is a step-by-step guide on how to download the statement for tax returns:

1.  Log in to your NPS account with the correct credentials.
2.  Navigate the main menu and click on ‘View’.
3.  Access the submenu ‘Statement of Voluntary Contribution under NPS’.

Following these steps will let you download the NPS contribution statement for the financial years you need. 

How to Download NPS Statements from the NSDL Portal?

Here is a detailed step-by-step guide on how to download the NPS statement from the NSDL portal:

1. Visit the official NSDL portal.
2. Login into your account using a valid username and password.
3. Enter the Captcha code as shown in the box and click on 'Proceed'.
4. Go to 'Transaction Statement' and click on 'Holding Statement'.
5. The following page will reflect your account balance. If you are willing to download an NPS receipt with the complete statement, select the option ‘Transaction Statement’ and then select ‘Download’.

How to Download NPS Statements from the NPS App?

Every NPS account holder can access the official NPS App by Protean to download an NPS statement. Here is a detailed guide on how to download a statement directly from the NPS App:

1. Download the NPS App from the Play Store or App Store and enter your 12-digit NPS user ID number.
2. Click on 'Reset' to reset your previous password via OTP sent to your registered mobile number.
3. After logging in, you will have the option to download the transaction statement for both Tier 1 and Tier 2 accounts, as needed.

After choosing the desired option, you can download the statement following the above-mentioned steps. This downloaded statement is not password protected. Thus, you can access it instantly. 

How to Download NPS Statements from the UMANG App?

Here is a detailed step-by-step guideline stating how to download an NPS statement from the UMANG App:

1. Get the Umang App on your smartphone.
2. Log into the app using the correct username and password and select NPS from the 'All Services' option.
3. Click on ‘Current Holdings’.
4. To check out the current holdings on the dashboard, enter PRAN and IPIN number.
5. Click on ‘Email Transaction Statement’ to get the NPS statement on your provided mail address.
6. Visit the ‘Transaction Statement’ section and provide your registered email ID.

Your NPS statement will be sent to your email ID instantly in the form of an attachment.

How to Download NPS Statements from DigiLocker?

DigiLocker is a safe online digital platform that enables you to access all your documents and certificates. Following the steps below will help you download the NPS statement directly from DigiLocker:

1. Download the DigiLocker app on your smartphone and then log in with your username and password.
2.  Search for “PFRDA” and choose the respective CRA.
3.  Provide the 12-digit Permanent Retirement Account Number (PRAN).
4.  Request the selected CRA to share the Statement of Account.

Once provided, the subscribers can download the respective NPS account statement. Thus, achieving the NPS transaction statement is easy and simple to use.

Conclusion

By now, you must understand how to download NPS statements and the importance of monitoring transactions on your account. The NPS statement is an essential proof of your contribution to the NPS. It is advisable to download the NPS statement regularly to keep an eye on the transactions and avail tax benefits. 

Follow the steps mentioned to access the NPS statement efficiently. Monitoring your investments will help you become a disciplined investor and plan your retirement journey responsibly.