Expecting a hike in National Pension Scheme (NPS) subscribers, Pension Fund Regulatory and Development Authority (PFRDA) chairman Hemant Contractor on Wednesday said the Budget announcements will support the pension plan.
"We are expecting a major boost in the number of NPS subscribers in the private sector,” Contractor said here.
Advertisement
It will happen because “in the 2017-18 Budget announcements, Arun Jaitley (Finance Minister) has allowed partial withdrawal of 25 per cent," Contractor said.
“No tax will be levied on partial withdrawal not exceeding 25 per cent of contribution from the NPS,” the Finance Ministry said earlier.
The benefit on partial withdrawals from NPS would be effective from next financial year which starts on April 1.
NPS is a voluntary retirement scheme, which enables systematic savings during the subscriber's working life.
(With inputs from agencies)
