CBDT notifies NPS Tier II-Tax Saver Scheme 2020 for Section 80C deduction

CBDT notifies NPS Tier II-Tax Saver Scheme 2020 for Section 80C deduction

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 45 /2020

New Delhi, the 7th July, 2020

S.O. 2232(E).—In exercise of the powers conferred by clause (xxv) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following scheme, namely:—

1. Short title and commencement.-(1) This scheme may be called the National Pension Scheme Tier II-Tax Saver Scheme, 2020.

(2) It shall come into force from the date of its publication in the Official Gazettee.

2. Definitions. -(1) In this scheme, unless the context otherwise requires,—

(a) “Act” means the Income-tax Act, 1961 (43 of 1961);

(b) “authority” means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act,2013 (23 of 2013);

(c) “investment” means contribution in an specified account by the Central Government employeein accordance with the scheme;

(2) The words and expressions used herein and not defined but defined in the Act shall have the same meaning as respectively, assigned to them in the Act.

3. Investment.-(i) The assessee, being a Central Government employee, shall make contribution to the specified account which has been activated by the authority in accordance with the provisions of this scheme read with the operational guidelines, if any, issued by the authority in this regard on or after the date of commencement of this scheme.

(ii) The minimum amount of contribution to activate the specified account shall be one thousand rupees and minimum amount of subsequent contribution shall be two hundred and fifty rupees.

4. Lock-in-period.-The contribution made under this scheme shall have a lock in period of three years from the date of credit of amount to the specified account.

5. Transferability.-The contribution made to the specified account shall not be permitted to be assigned, pledged or hypothecated during the lock-in-period.

[F. No.370142/26/2019-TPL]

GUDRUN NEHAR,
Director Tax Policy and Legislation)

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