Pension regulator pitches for tax incentives in upcoming Budget 2021

The pension regulator also wants tax parity for employees of state governments and private companies with those of the central government in respect of contribution to the NPS

The Ministry of Finance has received suggestions from financial sector regulators in the run-up to the Budget.

While the pension fund regulator has sought to increase the income tax deduction by Rs 50,000 per person under the new pension scheme, the GIFT city regulator has pitched for easing investment by non-resident Indians.

The Pension Fund Regulatory and Development Authority (PFRDA) is of view that increasing the threshold for availing of income tax deduction to Rs 1 lakh from the existing Rs 50,000 under the new pension system (NPS) would encourage more people to participate in it.

The deduction was given