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15
February 2017
The
Pension Fund Regulatory and Development Authority (PFRDA) on Wednesday said the
number of private sector subscribers of New Pension Scheme (NPS) saw a 60 per
cent increase during the April 2016 to January 2017 period due to exemptions
provided in the earlier Budget.
"Private
sector subscribers have gone up by 60 per cent till January in 2016-17. We are
currently at 8.82 lakh NPS subscribers in the private sector. We expect the
figure to reach 10 lakh by March 31," PFRDA Chairman Hemant Contractor
said here.
Contractor
was speaking on the sidelines of the full-day programme to train the trainers
of the IL&FS Skill Development Corporation on NPS.
This
agency has been recently hired by the regulator to train its intermediaries on
NPS and Atal Pension Yojana. The Total
Investment & Insurance Solutions
In
Budget 2016, the government had given additional tax exemption up to Rs 50,000
for contribution to NPS apart from the Rs 1.5 lakh ceiling provided under Section
80C.
The
total corpus of NPS currently stands at Rs 1.66 crore with more than 1.47 crore
subscribers, which includes central and state government employees for whom the
subscription is mandatory. The Total
Investment & Insurance Solutions
In
the Budget 2017-18, government has announced another sop and allowed tax-free
partial withdrawal of 25 per cent of employee's contribution.
"...
it has been proposed to provide exemption on partial withdrawals not exceeding
25 per cent of the employee's contribution in accordance with the terms and
conditions specified under the Pension Fund Regulatory and Development
Authority Act, 2013," the Finance Ministry said earlier. The Total Investment & Insurance Solutions
The
benefit would be effective on partial withdrawals made after April 1.
"This
will be another attractive feature. In emergency if we have to withdraw then
why should it be taxed. Partial withdrawl has been given as relaxation. I am
expecting major boost in terms of the NPS subscribers in 2017-18 as well,"
he said.
"But
I would like to keep the growth target at 40 per cent as to grow even 40 per
cent on a larger base is not easy for 2017-18," he added. The Total Investment & Insurance Solutions
Business
correspondents through the banks, cooperative banks, regional rural banks, post
offices, private and public sector banks will all be contributing towards an
increase in the number of NPS subscribers, Contractor said. The Total Investment & Insurance Solutions
The
NPS is a voluntary contribution retirement scheme. It enables systematic
savings during the subscriber's working life and aims to find a sustainable
solution to provide enough retirement income to every Indian citizen.The Total Investment & Insurance Solutions
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