NPS Latest News: 5 new rules w.e.f. 1st Aug, 2019
#This rules came into effect from August 1st -2019.
Recently, in the Budget The Government has announced some changes in National Pension Scheme (NPS) rules. viz. NPS trust department will restart recovery of administrative charges from the assets under management of NPS subscribers. Also Govt. announced more benefits for C.G. employees who contribute to the Scheme.
New 5 rules Changes in National Pension Scheme(NPS):
1) Under Income Tax Act, Section 80CCD(2) has been amended to allow exemption of employer contribution up to 14 % instead of 10 % of the salary of Central Government Employees. This benefit not for Private Sector Employees. This is only for C.G. Employees (approx. 18 lac employees).
2) The Government has been increased the tax exemption limit on withdrawal from NPS corpus at the time of retirement. On retirement, you can withdraw lumpsum of 60% of the NPS corpus and rest 40% will be invest in a Annuity Pension Plan. This withdrawal benefit reached to 60% from 40 % and this effect will be help to retirement staff.
3) As per approved by PFRDA authority, NPS trust will restart recovery administrative charges @ 0.005% per annum. The important notice for all subscribers, this administrative charges @0.005% per annum of the assets under management on daily accrual basis to meet its expenditure. This charges w.e.f. 1st August, 2019.
4) The Government has also announced own contribution by central govt. employees to Tier -II Account qualify for income tax benefits under section 80C, this money is locked in for a period of 3 years.
5) Recently, PFRDA had provided more choice of selecting fund managers to manage the NPS contributions of Employees including private sector fund managers.