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Showing posts with label National Pension Scheme. Show all posts
Showing posts with label National Pension Scheme. Show all posts

Sunday, 11 June 2017

07:24

Charter Of Demands:11th B.P.S Update

Charter Of Demands:11th B.P.S Update

11th B.P.S. update:
IBA has submitted their issues to UFBU after they have submitted their Charter of Demands.
Some of the issues as circulated by AIBOA....
MANAGEMENT ISSUES:
[1] C2C concept to be brought in
[2] Rationalisation of Special Pay carrying posts.
[3] Review of the two graduation increments
[4] Transfer and deployment of workmen staff
[5] Simultaneous conduct of departmental and judicial proceedings for workmen
[6] Conducting the departmental proceedings after retirement of workmen
[7] Premature retirement of workmen
[8] Outsourcing of any activity within the RBI guidelines
[9] Review of the automatic movement of officers from Scale I to II and also from Scale II to III
[10] To mark lien on NPS fund of employees to recover loss to the Bank on account of their proved misconduct.


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Monday, 29 August 2016

20:37

Gratuity for Employees under NPS!

Gratuity for Employees under NPS!
There was a talk that employees under NPS scheme are not entitled for Gratuity.
This was mentioned in the initial document of NPS scheme .
Later it was clarified , in parliament, that all employees are eligible to get Gratuity.
(I have posted the speech on Minister at that time)
Even then some section of employees are having doubts over eligibility.
Here is the official written document to confirm the eligibility for Employees under NPS scheme.
Hence Bank employees who joined on or after 01.04.2010 are eligible to get Gratuity as like employees under Old Pension Scheme.



Source;Indian Bank Kumar
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Tuesday, 1 March 2016

18:31

Budget 2016: Withdrawal from NPS on maturity made tax-free

Budget 2016: Withdrawal from NPS on maturity made tax-free

NEW DELHI: In Budget 2016, the finance minister has made withdrawals from NPS on maturity tax free upto 40% of the total corpus accumulated. Currently, none of the withdrawals were tax-free unlike other competing instruments such as PPF and EPF where the total withdrawal was tax -free. This is a major step towards making the NPS scheme more attractive and bringing it on par with the other EEE pension schemes.

This has implicitly made it attractive for investors to withdraw the corpus after 60 years (and not before) as any withdrawal before 60 years requires the utilisation of 80% of the corpus for purchasing annuity. This means that only 20% can be withdrawn before 60 years. Hence for getting the maximum tax benefit, it seems prudent to withdraw after 60 years. This is because after 60 years you can withdraw upto 60% of the corpus and out of this as per the new proposal 40% will be tax-free.

As per current tax laws, under Sections 80 CCD (1) and 80CCE an investment of up to 10% of Basic Pay plus Dearness Allowance or a maximum of Rs 1.5 lakh, whichever is lower, is deductible from gross taxable income. A self employed person can also claim tax deduction up to 10% of his gross income under Section 80 CCD (1) within the overall ceiling of Rs 1.5 lakh under Section 80CCE. However, the total deduction from gross taxable income that can be claimed is capped at Rs 1.5 lakh for all investments under Section 80CCE which includes investments under section 80C.

From FY2015-16, an investor is allowed an additional deduction of Rs 50,000 from gross taxable income for investing in NPS under Section 80 CCD (1B). This deduction is over and above the maximum tax deduction of Rs 1.5 lakh allowed under Section 80 CCE. Hence the total tax benefit for investing in NPS under Section 80 CCD (1) and Section 80 CCD (1B) is Rs 2 lakh. Only an investor in Tier I account can claim the above tax benefits.

 National Pension System (NPS) is a voluntary defined contribution  retirement savings scheme. On turning 60, an investor can exit from  the NPS but 40% of the pension wealth has to be utilised for purchase  of an annuity. If an investor withdraws the corpus before reaching 60  years of age, he will have to invest 80% of the accumulated corpus for    buying an annuity. These exit conditions only apply to NPS Tier I account which is a pre-requisite for having a Tier -II account in NPS.

NPS is currently subject to Exempt Exempt Tax (EET) tax structure. This means that contributions to NPS and accumulation/growth of these are not taxed but the lump sum withdrawn on exit from NPS is taxed. This is in contrast to the EEE tax structure applicable to other long term investment instruments like PPF and EPF where the maturity amount is also not taxed.

For an NPS investor in the highest tax bracket, this currently means that almost one third of the corpus is eroded by way of tax. The amount that is used to buy the annuity is however not subject to tax. This means that if an investor uses 100% of the accumulated corpus for buying an annuity then he won’t be subject to taxation. Only the pension income that he gets will be taxed like any other pension.

Source:Govemployees
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07:46

Measures for moving towards a pensioned society

Measures for moving towards a pensioned society 

While presenting the General Budget 2016-17 in Lok Sabha today, the Union Finance Minister Shri Arun Jaitley said that pension schemes offer financial protection to senior citizens. He proposed to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme(NPS). In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made after 1.4.2016. Further, the annuity fund which goes to the legal heir after the death of pensioner will not be taxable in all three cases. 

He also proposed a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit. 

He proposed to exempt from service tax the Annuity services provided by the National Pension Scheme (NPS) and Services provided by EPFO to employees. Also, he proposed to reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases. 

Source:PIBNEWS

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Sunday, 21 February 2016

07:12

Reserve Bank of India says no to NBFCs for selling pension plans under NPS

Reserve Bank of India says no to NBFCs for selling pension plans under NPS

The Reserve Bank has rejected requests from non-banking finance companies (NBFCs) to become an agent to sell pension products of PFRDA.

The RBI had received proposals from the NBFCs, wherein they had sought approval from the regulator for undertaking Point of Presence (PoP) services under Pension Fund Regulatory and Development Authority (PFRDA) for National Pension System.

"The Bank (Reserve Bank) has carefully examined the proposals and it has been decided, in public interest that NBFCs shall not undertake PoP services for National Pension System (NPS)", RBI said in a notification today.

The PoP Service Providers (POPSP) are the first points of interaction of the NPS subscriber with its architecture.

They act as collection points and give a number of customer services to NPS subscribers including requests for withdrawal from the pension plans.

Individuals who are employed and contribute to NPS enjoy tax benefits on their own as well as their employers contribution
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07:06

Budget 2016: PFRDA seeks complete tax exemptions for NPS

Budget 2016: PFRDA seeks complete tax exemptions for NPS

With an aim to increase its customer base, PFRDA Chairman Hemant Contractor today urged the government to provide 'Triple E' benefits to the schemes under the National Pension System (NPS) to bring them at par with EPFO and PPF where the maturity amount is not taxed.

"Our request to the government is with regard to making NPS a Triple E product," Contractor said on his expectations from the Union Budget to be presented by Finance Minister Arun Jaitley on February 29.

Under the 'Triple E' category investment, all three accrued interest and withdrawal are exempt from tax.
Talking to reporters, he said making the NPS a 'Exempt, Exempt, Exempt' product would go a long way in increasing the customer base of PFRDA.
"If this happens then our customer base will surely increase and it will help raise our corpus substantially," he said.

He said as compared to other pension schemes, NPS is a bit disadvantageous as both EPFO and PPF enjoy the 'Triple E' benefit.

"If our schemes too offer such facility, we think this will help us make join in a large number with our scheme, Contractor said.

The retirement saving scheme NPS falls under EET (Exempt-Exempt-Taxable) category, wherein investment gets deduction in the taxable income and also income/interest/gains are not taxed. However, maturity proceeds are taxable.

Pension Fund Regulatory and Development Authority (PFRDA) runs the NPS.
Contractor further said PFRDA has urged the government for continuation of the additional deduction of Rs 50,000 for contribution towards the NPS under Section 80CCD.

The PFRDA is also demanding that service tax on purchase of annuity should be removed.
Source:BankingUpdates

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Tuesday, 9 February 2016

20:00

Pension Subscribers Of National Pension Scheme

Pension Subscribers Of National Pension Scheme

National Pension System (NPS) had 11,459,555 subscribers with a total corpus of Rs. 90, 327 crore as on 23rd January, 2016. The total Assets under Management are worth Rs. 109,140 crore while Assets under Management per subscriber is Rs. 95,000 on an average.

The number of NPS Subscribers of the Central Government are 1611,020 with a total corpus of Rs. 34,754 crore while subscribers from the different State Governments are 2,859,094 with a total corpus of Rs. 45,486 crore. The number of NPS subscribers in the Corporate Sector are 448,509 while in Unorganized Sector is 128,484, the total being 576,993. The number of subscribers under NPS Lite include 4,463,637 and under Atal Pension Yojana (APY) 1,948,811, with a total number of subscribers 6,412,448 in these two categories.

NPS subscribers of Central Government are 14.1% of the total subscribers while that of the State Governments are 24.9%. The NPS subscribers under NPS Lite constitute 39% while under APY 17% of the total subscribers.

Since PFRDA has completed two years of its statutory status on 1st February, 2016, to mark this occasion, PFRDA in collaboration with all its intermediaries in the National Pension System including Central and State Governments’ Nodal Offices, POPs, Aggregators, Central Recordkeeping Agency and NPS Trust etc. is observing NPS Service Week from 1st to 6th February, 2016. This week-long campaign is being dedicated to service-orientation towards the subscribers and aimed at awareness building and improved information dissemination. During this Service Week, besides sharing of information on the range of functionalities and services now available under the NPS, the subscriber community will be apprised about the need for constant updation of data/information to enable the system to operate at its optimum service level, so that the intended benefits can reach all the employees/subscribers under NPS. Besides, the subscribers will also be able to make best use of all the opportunities and facilities.

The Pension Fund Regulatory and Development Authority (PFRDA) is organizing the 2nd Pension Conclave in national Capital on 4th February 2016 with the theme, “Towards Universal Pension: Coverage, Adequacy and Sustainability” in which all the stake holders are expected to participate and share their experiences. PFRDA proposes to use this occasion to acknowledge/award the best performing banks and Post Offices in mobilization and registration of subscribers under the Atal Pension Yojana (APY) up to 31st December 2015, and institute awards for best performing POPs under the Voluntary segment of the National Pension System.

Earlier, PFRDA launched NPS Awareness Programme for State autonomous bodies, Unorganized Sector, Corporate Sector and other categories in order to highlight the benefits of joining NPS and has requested the various State Governments to implement NPS more inclusively among the State Autonomous Bodies, Boards, Corporations, Societies, Universities and State aided institutions under various State Government departments. During the awareness programme, key features and benefits of NPS, details and process of joining NPS, details about NPS architecture investment and exit guidelines of NPS are highlighted.

 Source:Govemployees
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Tuesday, 3 November 2015

08:47

RBI opens National Pension Scheme as investment option for NRIs

RBI opens National Pension Scheme as investment option for NRIs

India has allowed non-residents to invest in the National Pension Scheme to provide them an access to old-age income security.
rbi
Reserve Bank of India on Thursday allowed NRIs to subscribe to the pension scheme, which is governed and administered by the Pension Fund Regulatory and Development Authority.
RBI said the decision has been taken in consultation with the government, which under Prime Minister Narendra Modi is going all guns blazing to appease NRIs.

A lot of interest has been generated around the new scheme with the Union Budget 2015 giving additional tax benefits for investments up to Rs 50,000. However, there is no ceiling on the investment amount.

RBI said that investment has to be routed through normal banking channels. The subscription amounts should be paid by NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account. There will be no restriction on repatriation of the annuity or accumulated savings.

Minimum annual subscription under NPS is Rs 6,000 while allocation to equities is capped at 50% of investment.

NPS investments mature when the investor turns 60. If the corpus is less than Rs 2 lakh, the entire sum can be withdrawn. If it is more, the subscriber must put at least 40% of the corpus into an annuity to get a monthly pension.

 Source :BankingUpdates.
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