Budget 2020 : Tax exemption for investments

Budget 2020: Tax exemption for investments up to Rs 1 lakh in new pension scheme

Under the NPS (New Pension Scheme), the tax exemption on investments up to Rs 50,000 can be increased to Rs 1 lakh.

Pension fund regulator PFRDA has suggested tax exemption on investments up to Rs 1 lakh within the new pension scheme within the upcoming budget. At present, individual taxpayers get tax benefits on investments of up to 50000 crores.

Full-time member of PFRDA, Supratim Bandopadhyay same that for the budget we tend to ar observing whether or not the tax exemption will be increased to Rs 1 lakh on the prevailing investment up to Rs 50,000 below the NPS (New Pension Scheme).

The Pension Fund restrictive and development authority additionally asked the government to increase the provision of tax-free 14% contribution for its central workers employees the NPS (New Pension Scheme) for all classes of contributors. Has requested. The contribution of 14% leader for central government employees is tax free from Apr 1, 2019.

In the case of employees, he aforesaid that we've given the good thing about tax exemption limit on the contribution of 14% on behalf of the employer (government) within the NPS (New Pension Scheme) to the government employees further because the autonomous bodies of the central and state government. Has urged.

In the case of state government and autonomous bodies, 10% of the contribution created by the employer is tax free and therefore the remaining 4% is taxed that is collectable by the employee.

Maharashtra, Bihar, Karnataka, Uttar Pradesh, Uttarakhand and Himachal Pradesh have increased the contribution of employers below NPS from 10% to 14%. However, the geographic region has also recently determined to extend the contribution to 14%.

Apart from this, we tend to ar urging to increase the age limit from 40 to 60 below the Atal Pension Yojana. Also, the current maximum pension limit has been redoubled from Rs 5,000 to Rs 10,000 monthly. At present, Atal Pension Yojana is taken from 18 to 40 years old people.