Income Tax

Tax exemption-Partial withdrawal from NPS not exceeding 25% of the contribution made by an employee from assessment year 2018-19

Tax exemption-Partial withdrawal from NPS not exceeding 25% of the contribution made by an employee from assessment year 2018-19

Budget 2017-18 : Tax-exemption to partial withdrawal from National Pension System (NPS)

The existing provision of section 10(12A) provides that payment from National Pension System (NPS) trust to an employee on closer of his account or opting out shall be exempt up to 40% of total amount payable to him. 

In order to provide further relief to an employee subscriber of NPS, it is proposed to amend the section 10 so as to provide exemption to partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made there under. 

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

Share

Recent Posts

  • CA CS CMA

CA accused of forgery by advising investment in a firm gets bail by Allahabad High Court

Chartered Accountant accused of forgery and misappropriation of fund by advising investment in a particular firm gets bail  In a…

3 minutes ago
  • consumer-protection

Software had nexus with generation of profits, purchaser can’t be said a consumer – SC

Purchase of software had a nexus with generation of profits, therefore purchaser was not a consumer under Consumer Protection Act…

3 hours ago
  • post office

Termination upheld of Postmaster who embezzled money by mere stamping passbooks

Termination upheld of Postmaster who embezzled deposit money by mere stamping passbooks of account holders. In a recent judgment, Hon'ble…

4 hours ago
  • GST

Supreme Court stays DGGI order on the issue of two parallel GST proceedings

Supreme Court stays DGGI order on the issue of bar on two parallel GST proceedings in terms of Section 6(2)(b)…

7 hours ago
  • Income Tax

Assessee can’t be said to indulged in penny stock sale without showing his involvement

Assessee could not said to indulged in penny stock sale on human probabilities without showing his involvement – ITAT deleted…

11 hours ago
  • Excise/Custom

Before staying CESTAT order High Court should have framed substantial questions of law – SC

Before staying CESTAT order the High Court should have framed the substantial questions of law and thereafter could have passed…

23 hours ago