
Government to now contribute 14% to National Pension System, no tax on withdrawal
Finance minister Arun Jaitley Monday said the Centre has decided to increase its contribution to the National Pension System (NPS) for the central government employees to 14% and also made the entire withdrawal amount tax free at the time of retirement.
The decision was taken at the Union Cabinet meeting last week.
The central government’s contribution to the National Pension System (NPS) will be increased to 14% from the current 10%. The minimum employee contribution stands at 10%.
Addressing the media in New Delhi, Jaitley said changes have been made in the NPS in “larger interest of employees”.
Under the NPS, the subscriber is eligible to withdraw 60 per cent of the corpus. The remaining 40% of the accumulated fund goes towards annuity.
Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60 per cent, the minister said, adding the entire withdrawal will now be exempt from income tax. Out of 60 per cent of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40 per cent is tax exempt and balance 20 per cent is taxable.
This tax exemption on withdrawal is for all sections of employees.
Additional burden due to the increase in government’s contribution on the exchequer will be Rs 2,840 crore for the 2019-20 fiscal, Jaitley said.
There had been a long pending demand to bring NPS in the EEE (exempt-exempt-exempt) category and at par with employee provident fund (EPF) and Public Provident Fund (PPF).

Reliance partners with Google, Facebook for digital payment network bid
- Facebook and Google are already partnered with Reliance and own stakes in Jio Platforms

ByteDance to hire 13k new employees, explore China's education technology

Texas’s power market is $1.3 billion short after energy crisis

McDonald's to sell part of its artificial intelligence start-up

Mukesh Ambani is again richest Asian as China’s Zhong loses $22 billion

Weekly wrap: After early surge, gold prices fall for last 3 days
- Gold set off to a brighter start at the beginning of the week as the price of the precious metal went up by ₹278 to ₹46,013 per 10 grams on Monday.

RBI in favour of retaining inflation target for 5 years

Telecom sector revenues back at pre-Jio levels

Indian shares crash as panic grips bond, global markets

India out of recession as GDP expands 0.4% in Q3

'Hit by double whammy of low growth, high inflation': Cong on economy's state

India's NSE defends reopening market after exchange's shutdown

Oil slumps with wider markets, denting record start to 2021

Reliance Jio launches new unlimited plans to usher in '2G-mukt Bharat'
- According to the plan, new users will get a JioPhone device, unlimited voice calls and data (2GB high-speed data every month) for two years at ₹1,999.
