Ø
National Pension
System (NPS) – partial withdrawal (upto 25%) is now fully exempted from tax.
Current Provision
|
Proposed Provision –Budget 2017
|
Payment from National Pension System (NPS) trust to an employee
on closer of his account or opting out shall be exempt up to 40%
of total amount payable to him.
|
partial withdrawal not exceeding 25% of the contribution made by
an employee in accordance with the terms and
conditions specified under Pension Fund Regulatory and
Development Authority Act, 2013 and regulations made there under will exempt
from Tax.
|
This benefit will be
available on partial withdrawal made by NPS subscriber after 1 April 2017.
Ø
Now the Non –salary /self-employed
individual will get deduction of contribution made in NPS upto 20% of salary as
against 10% earlier.
Current Provision
|
Proposed Provision –Budget 2017
|
Non- Salary Individual/ Self employed
Deduction under section 80CCD(1) of contribution made in NPS is
allowed up to 10% of salary.
Salary Individual/Employee
Deduction under section 80CCD(1) of contribution made by employee
in NPS is allowed up to 10% of Salary.
Deduction under section 80CCD(2) of contribution made by employer
of behalf of employee in NPS is allowed up to 10% of salary.
Thus in case of employee, the deduction allowed under section
80CCD add up to 20% of salary.
|
Non- Salary Individual/ Self employed
Deduction under
section 80CCD(1) of contribution made in NPS is allowed up to 20% of salary.
Salary Individual/Employee
Provisions in case of salary Individual remain the same.
|
Deduction with higher percentage
of 20% will be available on contribution made by Non –employee individual in
NPS after 1st April 2017.
No comments:
Post a Comment