Page 34 - Union Budget_2019
P. 34

Union Budget 2019


           6.4 Incentives to National Pension System (NPS) subscriber


           In order to incentivise NPS subscriber, it is proposed to make the following:


              •  Amending provisions of Section 10 to increase the limit for exemption on withdrawal of funds from
                  NPS, at the time of closure or opting out of scheme, has been increased from 40% to 60%.

              •  Revising provisions of Section 80CCD to increase the deduction limit for employee’s contribution
                  made by Central Government for its employees, from 10% to 14%.

              •  Contribution by Central Government employee to his Tier-II account of pension scheme shall be
                  eligible for deduction under Section 80C, on fulfilment of following conditions: -

                     o  The scheme shall be for a fixed period of not less than 3 years and
                     o  It is in accordance with the scheme as may be notified by the Central Government in the

                         Official Gazette.
                  Tier-II account of pension scheme shall have specified features relating to choice of multiple pension
                  funds and multiple schemes, option of investing, minimum assured returns, etc. and shall allow

                  subscriber to freely withdraw part or all his money anytime.



           These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to
           assessment year 2020-21 and subsequent assessment years.











































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