PFRDA is planning to approach the Finance Ministry seeking tax exemption for withdrawals under the National Pension System (NPS), its Chairman Hemant G Contractor has said.
The Finance Ministry will soon start the budget preparation exercise for Budget 2015-16, which will be the first comprehensive budget of the new Modi-Government.
Prior to the statutory recognition, the interim pension regulator had sought tax exemption on NPS withdrawals, but that tax break was not provided by the erstwhile UPA Government.
In his first interaction with mediapersons here on Wednesday, the new PFRDA Chairman, Contractor said there was need for some “fiscal” push from the Government to make NPS popular in the country.
A tax exemption on NPS withdrawals would address the “adequacy” aspect of retirement monies and ensure that taxes don’t eat into the retirement corpus of a subscriber.