AMN / NEW DELHI
Finance Minister Arun Jaitley has said Cabinet had decided to make some changes in National Pension Scheme, NPS on 6th of this month.
Speaking to media in New Delhi on Monday, Mr Jaitley said Central Government contribution will be raised to 14 per cent from existing 10 per cent in NPS.
He said the tax exemption limit for lump sum withdrawal on exit has been enhanced to 60 per cent.
With this, the entire withdrawal will now be exempted from income tax.
Freedom of choice will be provided for selection of Pension Funds and pattern of investment to central government employees.
Government employees contribution under Tier-II of NPS will now be covered under Section 80 C for deduction up to 1.50 lakh rupees for the purpose of income tax at par with the other schemes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund provided that there is a lock-in period of 3 years.