The government pension scheme is set to make a big change in the NPS i.e. National Pension System. According to information received from sources to CNBC Awaaz, investments of up to 1 lakh rupees in NPS can be tax free in the budget.
Also read: This scheme of Modi government did not stop today, last date extended till January 15
Apart from this, three more major changes are being considered in which the Systematic Withdrawal Plan (SWP), which is proposed by PFRDA, can be approved.
Under this, if the annuity is withdrawn at the time of maturity, only the interest will be taxed. Till now the entire amount (annuity and interest) was taxed.The third big change can be that the contribution that is made by the central government only is 14 percent, the same is tax free.
But now by increasing this, the state government, the autonomous body of the central and state government can also be given this facility. That is, if they also do their employer contribution which is 14 percent mandatory, then their tax can be made free. Right now only 10 percent is tax free.
Also read: Railways launched new facility in new year, 8 services will be available on this number from todayApart from this, the fourth big thing that the government had allowed in the last year to invest in corporate bonds, so far the condition was that only NPS can invest in corporate bonds rated A.
But according to information received from sources, now there are all corporate bonds with BBB rating, NPS can be allowed to invest there too.
This will especially benefit those people who did not want to keep their money till the time of maturity of NPS because it used to get low interest rate. Because of this, people used to do their withdrawal, the government is making this plan to stop it.
(Alok Priyadarshi, correspondent – CNBC Awaaz)
read this also:
Shock to common man on new year! LPG cylinder becomes expensive by this much money
ICICI Bank gave big gift to its customers on New Year! Now every month there will be savings of this much money
To read Hindi News first on News18 Hindi, we need YouTube, Facebook and Twitter Follow See the latest news related to Mumbai.
First published: Jan 1, 2020, 2:36 PM IST
This Diwali Bumper Discount
75% off on festive season. Subscribe for one year for just 289 Money Control Pro.Coupon Code: DIWALI Offer: As of November 10, 2019