CIRCULAR

Date: 19th March 2019

As you are aware, the Government of India started the National Pension Scheme to cover the
citizens under the affordable social security scheme, NPS, which is a low cost, tax efficient, flexible
and portable Scheme. The Scheme is based on unique Permanent Retirement Account Number
(PRAN), which is allotted to each individual upon joining NPS. Upon contribution by the Employees,
the amount accumulated in the scheme is invested by the Fund Manager and thus in the long run,
the investment growth derived from the contributions made, is utilised for payment of pension for
employees post retirement.

Contribution deposited by the Employee directly to the extent of Rs. 50,000/- is eligible for
tax deduction under section 80CCD (1b) of Income Tax Act. Contribution routed through
Employer to the extent of 10% of Salary (Basic + DA) is eligible for tax deduction under section
80CCD (2) of Income Tax Act. This is a voluntary participatory scheme and hence only those,
who are keen to be a member of the scheme, can opt. There is option of flexi-contribution
amount to the scheme also.

In view of the above, we are providing the option to all the employees of the Company to
subscribe to National Pension Scheme. The Finance and Accounts Department will coordinate
with Pension Fund Manager – HDFC Securities Ltd for timely and regular deposition of your
contributions to them for creation of your pension fund. The interested employees opting to
opening of NPS Account may kindly coordinate with Mr. Arun Biyani (Email id:
abiyani@birlacorp.com).

For clarifications on the National Pension Scheme and about the Fund Manager, employees may
refer to the attached (1) FAQs, and (2) a Presentation.

Best regards

Bimal Roy
Head - (Corporate HR)
Birla Corporation Limited