Categories: Taxes in India

Employer Contribution May Be Tax-Free Under National Pension Scheme

The government in the next budget under the NPS (National Pension Scheme) tax-free can do 14% of the employer contribution. This waiver can be provided to every subscriber resting in the class. But presently this tax privilege is just for the employees of the central government. The Supratim Bandyopadhyay, chairman of pension fund regulator PFRDA, the governor has applauded the government for the aforementioned. The advantage will then be taken by the subscribers.

NPS Addition is Fully Tax-free!

On 1 April 2019, 14% of the employer contribution for the employees of the Central Government beneath the NPS was done tax-free as mentioned by the PFRDA chairman. Thus appeal has been furnished by the PFRDA to the government to provide the privilege to the subscribers. This has also been applied to the NPS offering to the companies who work in the state government or in the corporate sector.

Read Also: Section-Based Income Tax Saving Tips For Salaried Person Several section-based income tax saving tips are available in the Indian IT act. We have described all acts along with meanings that can give tax saving benefits

There are a Couple of NPS Account

Tier-1 and Tier-2 are the two classes of accounts in the National Pension Scheme. A Tier-1 account is the pension account while a Tier-2 account is the voluntary savings account. The subscribers of the NPS who constitute Tier-1 accounts can open the Tier-2 accounts to execute this you can go offline or the NPS portal. If you seek to save for your retirement then you can take the benefits of the NPS.

Investment Can be Done Whose Age Lies Between 18 to 65 years

People aged between 18 to 65 years can join the NPS. PFRDA provides the work to the enrolled manager who manages the fund so to invest the amount deposited in NPS. they do invest in equity, government securities, and non-government securities apart from the fixed sources of income. It is simple to open the NPS account. The PFRDA has clarified the option to open an NPS account via One Time Password (OTP).

Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

6 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

8 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

9 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

11 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago