PFRDA Demands Equal Tax Treatment For NPS

Ahead of the budget, interim pension regulator PFRDA on Feb 9 demanded equal tax treatment for New Pension Scheme (NPS) for government employees vis-à-vis provident funds like EPF, PPF and GPF. While contribution, returns and withdrawals under Public Provident Fund (PPF), Employee Provident Fund (EPF) and General Provident Fund (GPF) are exempt from tax, in case of NPS, only contribution and returns do not attract tax. However, withdrawal under NPS attract tax. This is called exempt, exempt and tax (EET) system, unlike exempt, exempt and exempt (EEE) system for PPF, EPF and GPF