> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Declare NPS

> National Pension Scheme (NPS) is a voluntary social security scheme that many employees avail to build a retirement corpus. Many organisations offer Employer's NPS as an added benefit. All NPS contributions are tax-exempt upto ₹7.5 lakhs under the IT Act, 1961 for employees.

You can declare your Employer's NPS contribution on Payroll.

* This is possible only if your organisation has enabled you to declare.
* If your employer has enabled only NPS but has disabled contribution declaration, we contribute a fixed amount as set in your organisation's [salary structure](/payroll/salary#setup-salary-structure). This is up to 10% from the Basic Pay + Dearness Allowance.

<Warning>
  **Watch Out!**

  Your organisation handles the employer's NPS contribution only. Employees must handle self-contribution to NPS (as per Section 80CCD-1B) externally via investment/banking apps.
</Warning>

## Declare NPS Contribution

To declare NPS contribution as an employee:

1. Log in to the [Payroll Dashboard](https://payroll.razorpay.com/dashboard).

2. Go to **Tax Deductions** in the left menu. You can also check the **Reminders** menu on the Payroll home page.

3. On the **Tax Deductions FY** page, click **NPS Declarations** in the right pane. This opens the **Employer NPS** page.

4. Enter a percentage that is less than 10% (of Basic Pay + Dearness Allowance) in the text box for **Contribution Amount**. You can view your NPS contribution amount on the right pane.

5. Provide your Permanent Retirement Account Number (PRAN) in the text box. In case your PRAN is available with the organisation, we pre-fill the text box with the number.

6. Click **Calculate how much you'll save** to view the NPS contribution amount.

   You can also modify your NPS contribution. Edit the percentage in the **Contribution Amount** text box and click **Re-calculate**. Review the changes and the comparison to the previous declaration on the right pane.

7. Click **✓ Save Declaration**.

You have successfully declared or changed your employer's contribution to NPS. Your declaration becomes visible on the Tax Deductions FY table on the **Tax Deductions** page.

### Related Information

* [Employer's NPS Contributions](/payroll/nps)
* [IT Declarations](/payroll/employees/declarations)
* [Tax Deductions under Sections 80 and 80C as per IT Act, 1961](https://razorpay.com/payroll/learn/section-80-80c-deductions-income-tax/)