More tax sops in NPS likely in Budget
In a bid to enhance the attractiveness of the NPS, the govt is considering extending tax concessions for contributions and withdrawals, with a focus on senior citizens above 75 years
More tax sops in NPS likely in Budget
Enhancing attraction
- Tax concessions for senior citizens
- PFRDA’s Push for Tax Parity
- To bridge disparity in employers’ contributions
- Inclusion in tax filing exemptions
- Tax breaks under new tax regime
- Government employee pension system review
New Delhi: The central government may make the National Pension System (NPS) more attractive by extending tax concessions on contributions and withdrawals especially for senior citizens above 75 years.
Pension fund regulator PFRDA has sought “parity” with Employees’ Provident Fund Office (EPFO) on the taxation front for contributions by employers and some announcements in this regard are expected to be made in the interim Budget. Finance Minister Nirmala Sitharaman is expected to present the interim Budget on February 1. This is going to be her sixth Budget.
At present, there is a disparity in the employers’ contributions in building corpus for the employees, wherein contributions up to 10 per cent of basic salary and dearness allowances by a corporate are exempt from tax for NPS contributions, while the same is 12 per cent in the case of EPFO.
