PFRDA To Request Govt To Make Employer’s Contribution, Tier II Account Tax Free For AllNovember 16, 2020 13:02
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In the next budget, Chairman Supratim Bandyopadhyay said that the
PFRDA will request the government to make employers' contribution of 14 percent under NPS tax free for all categories of subscribers.
From April 1, 2019, the employers’ contribution of 14 percent in pension under the National Pension System Scheme was made tax free for the central government employees.
So that all subscribers get equally benefited, it is a request to the Government that all employers(whether State or Corporate Entities) should get this leverage of paying no taxes on the 14 percent contribution they make.
Bandyopadhyay, told PTI, "We may propose things like 14 percent contribution by employers to be made tax free to all. Currently, it is given only to the central government employers.
"So we are requesting the government to give it to all the employers, whether it is state governments or other corporate entities, so that subscribers across the board can get this benefit,"
The PFRDA Chairman has said that the authority has received several requests from the State governments on the same.
By Neha Makhija