The deadlines for making tax-saving investments, as well as for making minimum investments to keep accounts active were extended for FY 2019-20 till June 30, 2020.
Due to various reasons, Nitesh Dutt, who falls in the 20 per cent tax bracket, was unable to make his yearly contribution of Rs 50,000 for the Financial Year (FY) 2019-20 to save additional tax of Rs 10,000 over and above the 80C deductions.
One of the reasons was a change in his bank account. He closed the Savings Bank Account linked with his National Pension System (NPS) Account after losing some balance due to online fraud.
As he used to pay NPS contributions through his Demat Account, he linked the new Savings Bank Account with his Demat Account, thinking that contributions to NPS through the account will be processed.
However, he was unable to contribute to NPS and thought there must have been some Net Banking problems and continued to contact the bank to get it solved.
By the time he realised that the problem was not with his Net Banking access after some transactions were successfully done, the nationwide lockdown to contain the spread of Novel Coronavirus COVID-19 had already begun.
On contacting the customer care number of the Point of Presence (POP) through which he used to make NPS contributions, he came to know that not only for the Demat Account, but a separate application form is also to be submitted physically to change the bank account linked with his NPS.
Other problems – that prevented the NPS contribution – were that his Debit Card was also blocked along with his Savings Bank Account and was not activated and his Credit Card was expired.
With the deadlines for making tax-saving investments, as well as for making minimum investments to keep accounts active were extended for FY 2019-20 till June 30, 2020, he waited patiently to visit the POP branch to get the new Savings Bank Account linked with his NPS Account.
However, he got impatient when the POP branches remained locked down even during the month of June. After calling the customer care number of the POP again, he was informed that contributions may be deposited by creating a login access with eNPS portal of Kfintech.
Accordingly, he visited the enps.kfintech.com/login/login/ page and by clicking on “’Click here’ to generate password if you are a first time user/shifted subscriber or to reset your password,” he was able to create an eNPS account by entering his PRAN, date of birth and captcha code and through OTP verification.
Out of the payment options through Net Banking, Debit Card and Credit Card, he paid Rs 1,000 through his newly issued Credit Card to keep his NPS Tier-1 Account activated.
However, the POP Services Charges on contributions made through eNPS portal of Kfintech was more than the contributions made through the Demat Account, apart from 0.9 per cent transaction charge (plus GST) on payment through Credit Card. The charges on payment made through Debit Card is 0.8 per cent of the contribution amount and through Net Banking is Rs 0.60 per transaction on the eNPS portal.