Popularization of the New Pension Scheme
In the Finance Bill, 2009, the Government has proposed to provide necessary fiscal support to the New Pension System (NPS). Accordingly, it has proposed to exempt the income of the NPS Trust from income tax and any dividend paid to this Trust from Dividend Distribution Tax. Similarly, all purchase and sale of equity shares and derivatives by the NPS Trust will also be exempt from the Securities Transaction Tax. Further, it is also proposed to amend Section 80 CCD of Income Tax Act, 1961 to extend the benefit of this section to all individuals participating in the NPS.
The PFRDA had requested the Government to extend to the NPS the benefit of Exempt-Exempt- Exempt tax status, as available to other savings schemes like PPF, GPF, EPF, Life Insurance etc; bear the cost incurred on NPS intermediaries in the initial years; and extend the tax benefit available under section 80 CCD of the Income Tax Act to the self-employed persons.
This information was given by Minister of State for Finance, Shri Namo Narain Meena in reply to a question raised by Subhash Prasad Yadav in Rajya Sabha today.
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"