Budget 2024: Government can make a new announcement regarding NPS, senior citizens can get this bumper discount
Nirmala Sitharaman:Pension fund regulator PFRDA has requested for 'parity' in EPFO on the matter of taxation of contributions by employers. Announcements in this regard are expected to be made in the interim budget.
The Kalamkar News, Interim Budget 2024: There are a lot of expectations from the interim budget presented by the government on February 1 for the salaried class.
Along with changes in the tax slab, the employed people are also expected to increase the scope of 80C. Apart from this, this time the National Pension Scheme (NPS) can be made more attractive by increasing the tax rebate on investment and withdrawal for senior citizens above 75 years of age.
Pension fund regulator PFRDA has requested for 'consistency' in EPFO on the matter of taxation of contributions by employers. Announcements in this regard are expected to be made in the interim budget.
Finance Minister Sitharaman will present the budget for the sixth time
Finance Minister Nirmala Sitharaman will present the interim budget on 1 February. This will be the sixth budget presented by him.
Currently, there is a disparity in the contribution of employers towards creating a corpus for employees, with corporate contributions up to 10 per cent of basic salary and dearness allowance being exempted from tax for NPS contributions, while EPFO is exempted from tax for NPS contributions. In case of , it is 12 percent.
No need to file returns on income from NPS
According to Deloitte's budget expectations, NPS will promote long-term savings through NPS and reduce the tax burden for senior citizens above 75 years of age.
The annual portion of NPS (NPS) should be tax rebated to investors. According to financial advisory and audit services company Deloitte, NPS can be clubbed with interest and pension to ensure that senior citizens above 75 years of age do not have to file returns on the income received from NPS. .
Rebate up to Rs 50,000
is currently not covered under lump sum withdrawal tax of 60 per cent. There is a demand to provide tax rebate for investment in NPS under the new tax regime. Currently, under section 80CCD (1B), an individual's contribution to NPS up to Rs 50,000 is eligible for deduction under the old tax regime. But not under the new tax regime. This is more than the tax rebate of Rs 1.5 lakh available under 80C in the old tax regime.
Regarding government employees, the government had last year constituted a committee under the leadership of Finance Secretary TV Somanathan to review the pension system and suggest measures for its improvement. This committee has not yet submitted its report.