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

“Privacy is the foundation of what makes life worth living”

Joseph A Cannataci is the UN’s first and current special rapporteur for the right to privacy appointed by the Human Rights Council (HRC) in July 2015. His appointment came with growing global concerns about threats to privacy in the digital age where governments and big corporations collect

Suicide is all set to be decriminalised

Those who attempt suicide will no longer face criminal charges under the Indian Penal Code (IPC), once the Lok Sabha passes the “The Mental Healthcare Bill”. The government has introduced “The Mental Healthcare Bill”,

Challenges with regulation of medical education: Niti Aayog

  There are challenges with the regulation of medical education for Indian Systems of Medicine and Homoeopathy, said a Niti Aayog report.   A Preliminary Report of the Committee on the Reform of the Indian Medicine Central Council Act 1970 and Homoeopathy Cen

In conversation with author Chitra Banerjee Divakaruni

Chitra Banerjee Divakaruni was born in Kolkata and has spent most of her life in Northern California. The two cultures are reflected in her writings. Two of her books, The Mistress of Spices and Sister of My Heart, have been made into a movie and TV serial, respectively. Palac

Five points about UK parliament resolution on Gilgit-Baltistan

  Here are five highlights of the resolution that was passed by the British parliament over Gilgit-Baltistan in Pakistan.   Read: Resolution in British parliament 

Would AAP do well in the Delhi civic elections?

Would AAP do well in the Delhi civic elections?

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter