TAX RELAXATION UNDER NPS
Press Information Bureau
Government of India
Ministry of Finance
03-February-2017 18:16 IST
Tax Relaxation under NPS
The Finance
Act, 2016 amended the Income-tax Act, 1961 (the Act) to provide that 40% of the
amount payable to the employee subscriber of NPS on his closure of account or
his opting out of the scheme, shall be exempt from tax.
Further,
Finance Bill, 2017 has proposed to amend the Act to provide exemption from tax
at the time of partial withdrawal by an employee from National Pension System
Trust in accordance with conditions specified under Pension Fund Regulatory and
Development Authority Act, 2013 and regulations made there under, to the extent
it does not exceed twenty five per cent of the contributions made by him.
There was no
proposal for tax relaxation from Securities and Exchange Board of India in the
agenda of 16th Financial Stability Development Council meeting held on
5thJanuary 2017.
This was stated
by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in
written reply to a question in Lok Sabha today.
DSM/KA (Release ID
:158034) (o3.02.2017)
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