LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
»
1-min read

Govt Contribution to National Pension Scheme Raised by 4 Per Cent, Withdrawal Made Tax Free

The central government's contribution to the National Pension System (NPS) will be increased to 14 per cent from the current 10 per cent. The minimum employee contribution stands at 10 per cent.

PTI

Updated:December 10, 2018, 4:54 PM IST
facebookTwittergoogleskypewhatsapp
Govt Contribution to National Pension Scheme Raised by 4 Per Cent, Withdrawal Made Tax Free
File photo of FM Arun Jaitley. (Image: PTI)
Loading...
New Delhi: Finance Minister Arun Jaitley on Monday said the Centre has decided to increase its contribution to the NPS for the central government employees to 14 per cent and also made the entire withdrawal amount tax free at the time of retirement.

The decision was taken at the Union Cabinet meeting last week.

The central government's contribution to the National Pension System (NPS) will be increased to 14 per cent from the current 10 per cent. The minimum employee contribution stands at 10 per cent.

Addressing the media here, Jaitley said changes have been made in the NPS in "larger interest of employees".

Under the NPS, the subscriber is eligible to withdraw 60 per cent of the corpus. The remaining 40 per cent of the accumulated fund goes towards annuity.

Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60 per cent, the minister said, adding the entire withdrawal will now be exempt from income tax.

Out of 60 per cent of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40 per cent is tax exempt and balance 20 per cent is taxable.

This tax exemption on withdrawal is for all sections of employees.

Additional burden due to the increase in government's contribution on the exchequer will be Rs 2,840 crore for the 2019-20 fiscal, Jaitley said.

There had been a long pending demand to bring NPS in the EEE (exempt-exempt-exempt) category and at par with employee provident fund (EPF) and Public Provident Fund (PPF).

Catch the biggest newsmakers and the biggest newsbreaks on CNN-News18, the only news destination. Keep watching CNN-News18 at just 50 paise per month. Contact your cable/DTH operator now!

*Rental/capacity fee of Rs. 130/- as charged by cable/DTH operator may apply. **GST extra.
| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Reliance 1,184.35 4.40
Jet Airways 281.20 -1.44
Yes Bank 198.60 -1.44
HUL 1,744.10 -0.42
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Reliance 1,182.95 4.34
ICICI Bank 371.90 -0.39
Jet Airways 281.35 -1.21
Yes Bank 198.25 -1.59
Top Gainers
Company Price Change %Gain
Reliance 1,184.35 4.40
Wipro 346.15 3.21
Kotak Mahindra 1,240.20 1.66
Hindalco 208.80 1.36
Adani Ports 399.30 1.22
Company Price Change %Gain
Reliance 1,182.95 4.34
Kotak Mahindra 1,237.35 1.41
HCL Tech 964.50 1.02
Asian Paints 1,401.30 0.85
ONGC 146.25 0.79
Top Losers
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Bharti Airtel 311.15 -6.29
GAIL 322.15 -3.08
Larsen 1,317.90 -2.09
HPCL 239.50 -1.92
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Bharti Airtel 310.95 -6.42
Larsen 1,318.25 -2.07
Axis Bank 664.30 -1.77
Yes Bank 198.25 -1.59

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results