The pension fund industry players have welcomed the move to exempt the NPS Trust from the Securities Transaction Tax (STT).
Finance Minister Pranab Mukherjee, in his Budget speech today, said that all purchase and sale of equity shares and derivatives by the NPS Trust will be exempted from the Securities Transaction Tax.
"The exemption of STT is a welcome step which will add more value to the NPS," UTI AMC's Chief Marketing Officer, Jaideep Bhattacharya, said.
"The Budget is for inclusive growth and good for the new pension system," LIC Pension Fund's Chief Executive Officer, H Sadhak, said.
Presently, the pension industry is paying a 0.125 per cent on investment under STT, he said.
"Abolition of STT will increase the funds for NPS Trust as well as the returns on investment. This a beneficial step for subscribers," Sadhak said.
"The removal of STT for the NPS Trust on purchase and sale of equity shares and derivatives would make transactions easier," Shinsei Bank's Country Head, Sanjay Sachdev, said.
However, it (Government) should have extended the tax exemption at the time of withdrawal under the NPS, Sachdev said.
