Bank of Baroda National Pension Scheme

What is the Bank of Maharashtra NPS Scheme?

The Bank of Maharashtra NPS Scheme is a retirement-oriented investment plan that allows individuals to contribute regularly to build a pension corpus. The scheme functions under the PFRDA guidelines and is facilitated through the bank's Point of Presence (POP) network. Subscribers can open and manage their NPS account with ease through the bank.

Features of Bank of Baroda NPS

• Choose your own contribution amount and frequency.
• Open your account easily online or offline via the Central Recordkeeping Agency (CRA).
• The PRAN (Permanent Retirement Account Number) is issued during registration.
• You can choose your preferred investment option and fund manager.
• The account is fully portable, even with job/location changes. You can use it from any location.
• Benefit from strict monitoring by PFRDA ensures transparency and high performance.

Types of Bank of Baroda NPS Accounts & Applicable Charges

Who is Eligible for the Bank of Baroda National Pension Scheme?

• Indian citizens (including NRIs and OCIs)
• Age between 18 to 70 years
• Must complete KYC verification
  
  

Tax Benefits Under Bank of Baroda NPS

Bank of Baroda NPS account holders can enjoy tax-saving benefits under three distinct sections of the Income Tax Act.

Section 80CCD(1): Employee's Contribution

Eligibility:
This section is applicable to both salaried employees and self-employed individuals who contribute to their own National Pension Scheme (NPS) account.

Deduction Criteria:

• Salaried employees can claim a deduction of up to 10% of their salary (Basic + Dearness Allowance).
• Self-employed individuals may claim up to 20% of their gross total income.
  
  

Maximum Deduction Permitted:
The deduction under Section 80CCD(1) is subject to an annual ceiling of ₹1.5 lakh.

Example:

• Anisha's annual Basic + Dearness Allowance is ₹8,00,000
• 10% of ₹8,00,000 = ₹80,000
• Anisha can claim ₹80,000 as a tax deduction under Section 80CCD(1)
• However, this is part of the overall ₹1.5 lakh limit under Section 80CCD(1), which includes other eligible investments

Tip: If you've already claimed the full ₹1.5 lakh limit through PPF, EPF, or LIC premiums, you won't be able to claim this amount unless you reduce those contributions

Section 80CCD(1B): Additional Benefit

Eligibility:
Available to all NPS subscribers who choose to make voluntary contributions over and above their regular limit.

Deduction Criteria:
An additional deduction of up to ₹50,000 is allowed under this section.
This deduction is independent of and in addition to the limit under Section 80CCD(1).

Example:

• Anisha has already exhausted her ₹1.5 lakh deduction limit through other investments
• She invests an additional ₹50,000 in her NPS account
• She can claim this amount separately under Section 80CCD(1B)

Result: Her total tax-saving limit increases from ₹1.5 lakh to ₹2 lakh

Section 80CCD(2): Employer's Contribution

Eligibility:
Applicable to salaried employees whose employers contribute to their NPS accounts.

Deduction Criteria:

• Under the old tax regime, the deduction is limited to 10% of salary (Basic + DA).
• Under the new tax regime, central government employees may claim up to 14% of their salary as a deduction.
  
  

Exclusion from Contribution Caps:
The benefit under Section 80CCD(2) is distinct from the personal contribution limits under Sections 80CCD(1) and 80CCD(1B). It does not fall within the ₹1.5 lakh or ₹2 lakh deduction limits applicable to individual contributions.

Example:

• Anisha's annual Basic + DA is ₹12,00,000
• Her employer contributes 10% of that = ₹1,20,000 to her NPS account
• Anisha can claim ₹1,20,000 as a deduction under Section 80CCD(2)

Note: Under the new tax regime, if the employer contributes 14% of the salary, the full amount can be claimed, offering even greater tax benefits

How to Invest in Bank of Baroda NPS? Step-by-step Guide

NPS BOB offers you two easy account opening modes: Online and Offline.

1. Online Registration

   • Visit Bank of Baroda's official website and go to its NPS page.
   • Click on 'explore' under the option Open NPS account online.
   • Fill in the required details.
   • Upload your KYC documents and the scanned copy of your signature.
   • Pay your first contribution online.

2. Offline Registration

   • Visit the Bank of Baroda branch closest to you.
   • Fill up the NPS registration form.
   • Submit the form and your KYC documents.

After verification, your NPS account is activated.

Conclusion

The NPS from Bank of Baroda offers a smart, flexible, and tax-efficient way to secure your future. Whether you're a salaried employee, self-employed, or from a low-income background, BOB's NPS schemes are designed to meet your retirement planning needs.

From simple onboarding to transparent fund management and nationwide accessibility, BOB makes your retirement journey easier and more rewarding.

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