Nirmala Sitharaman: Pension fund regulator PFRDA has requested for ‘parity’ in EPFO on the matter of taxation for contributions by employers. Announcements in this regard are expected to be made in the interim budget.
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 ‘parity’ in EPFO on the matter of taxation for 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 the EPFO contribution is exempted from tax. In case of , it is 12 percent.
No need to file returns on income from NPS
As per Deloitte’s budget expectations, to promote long term savings through NPS and reduce the tax burden for senior citizens above 75 years of age, the annual portion of NPS will be tax free for investors. Rebate should be made. 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.
