PSU pension talks trip on tax

GN Bureau | December 21, 2015



Attempts by the pension fund regulatory and development authority (PFRDA) to bring employees of public sector undertakings under the National Pension System (NPS) has hit a “tax hurdle”.

There is no tangible movement in this direction, as any such migration could lead to levy of income tax on the employee, Hemant Contractor, Chairman, PFRDA has said.

Contractor said the PFRDA is in talks with the government to sort out the tax issue so that PSU employees can also opt for the NPS. The NPS is a defined contribution scheme that became operational from January 1, 2004, wherein the final corpus depends upon the contribution made by the subscribers and the investment returns.

From January 1, 2004, NPS was applicable to all new Central Government employees, except the Armed Forces. With effect from May 1, 2009, NPS was made available to all Indian citizens on voluntary basis. In December 2011, the PFRDA introduced a corporate sector model to provide NPS to employees of corporate entities of private and public sector enterprises. However, public sector employees have not boarded the NPS train due to several reasons, the main one being tax.

Comments

 

Other News

80 percent abortion in India through medicines: Lancet

 Three in four abortions in India are through drugs from chemists and informal vendors rather than from health facilities, said a report in The Lancet. An estimated 15.6 million abortions were performed in the country in 2015, reports The Lancet in its latest released paper on ‘Inciden

A turbulent journey so far for seaplanes in India

Prime minister Narendra Modi’s seaplane ride in Gujarat is certainly unique, but it is not as historic as it is being made out to be. Gujarat chief Minister Vijay Rupani said this is for the first time in the history of the country that a sea-plane will land on a water body and that wi

GAIL fast tracks implementation of Pradhan Mantri Urja Ganga project

 GAIL has awarded a contract for laying 520 km gas pipeline connectivity from Dobhi (Bihar) to Durgapur (West Bengal), including 120 km line to Jamshedpur (Jharkhand). With these awards, major contracts for phase two of the Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL) project have

Indane LPG refill booking through FB, Twitter launched

 IndianOil corporation (IOCL) has launched Indane LPG cylinder refill booking through social media platforms like Facebook and Twitter. Director (marketing) Gurmeet Singh emphasised on the need to leverage technology and the growing social media to provide simpler and effective options to cu

Time for India to adopt DNA forensics to solve crime

Forensic DNA has emerged as the world’s greatest crime fighting technology. Many countries are effectively using forensic labs and protocols to collect, test and compare DNA at crime scenes with that of suspects with promising results. While the law machinery the world over is increasi

Do you think sea-planes can be used to improve air connectivity?

Do you think sea-planes can be used to improve air connectivity?



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter