Government
of India
Ministry
of Labour & Employment
27-April-2016 16:52 IST
Changes in NPS
The Government has proposed the
following in the Finance Bill, 2016 with regard to the National Pension System
(NPS):
i. Allowing 40 per cent of the NPS
corpus tax exempt on lump sum withdrawal.
ii. Waiving service tax on the NPS
corpus utilized for purchase of annuity.
iii. The amount receivable by the
nominee in case of death of the subscriber covered under NPS has been made tax
exempt.
iv. One-time portability without any
tax implication has been allowed to the subscriber for shifting from recognized
provident fund to NPS.
v. One-time portability without any
tax implication has been allowed to the subscriber for shifting from
superannuation fund to NPS.
As per the provisions of the Finance
Bill, 2016, 40 per cent of the pension corpus under NPS is proposed to be tax
exempt on lump sum withdrawal. Also, the proposal in the Union Budget, 2016-17
for taxation of 60 per cent of provident fund corpus under the Income Tax Act,
1961 has been withdrawn by the Government. Employees' Provident Fund (EPF)
remains an Exempt Scheme.
However, EPF and NPS are different
schemes available to separate categories of subscribers and they are not
comparable on one-to-one basis.
This information given by Shri
Bandaru Dattatreya, Minister of State (IC) for Labour and Employment, in reply
to a question in Rajya Sabha today.
******
No comments:
Post a Comment