PFRDA permits Overseas Citizens of India (OCI) to enrol under National Pension System at par with Non-Resident Indians - (30 Oct 2019)
Civil
In a significant decision aiming to enhance pension coverage, Pension Fund Regulatory and Development Authority (PFRDA) has now permitted Overseas Citizen of India (OCI) to enrol in National Pension Scheme (NPS) at par with Non-Resident Indians. Now, Overseas Citizens of India (OCI) will be eligible to take benefit under NPS. However, an OCI may subscribe to the National Pension System governed and administered by PFRDA, provided such person is eligible to invest as per the provisions of the PFRDA Act and the annuity/accumulated saving will be repatriable, subject to FEMA guidelines. Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years.
Further, contributions made towards NPS are eligible for an additional tax deduction under Section 80CCD(1B) of Income Tax Act, 1961, upto Rs. 50,000 which is over and above the Rs 1,50,000 limit of deduction available under Section 80CCD(1) of IT Act. In the Union Budget 2019, the tax exemption limit for lumpsum withdrawal on exit/maturity from NPS has been increased from the present 40% to 60% under Section 10(12A) of the IT Act and the remaining 40% of the corpus is already tax-exempt as it is mandatorily utilized for annuity purchase.
The Pension Fund Regulatory & Development Authority Act was passed on 19th September, 2013 and the same was notified on 1st February, 2014. PFRDA is regulating NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors. . NPS was initially notified for central government employees joining service on or after 1st January, 2004 and subsequently adopted by almost all State Governments for its employees. NPS was extended to all citizens of Indian on voluntary basis from May, 2009 and to corporate in December 2011 and to Non-Resident Indians in October 2015. The total number of subscribers under NPS and Atal Pension Yojana has crossed 3.18 crores and the Asset under Management (AUM) has grown to Rs. 3,79,758 crores. The decision will further enhance growth of National Pension Systems and schemes thereunder.
Tags : OCI ELIGIBILITY NPS
Share :
|