Tax-free returns likely for Varishta

 The Centre is likely to grant tax-free returns on Varishta Pension Bima Yojana, which offers 9 per cent interest rate for senior citizens in the 53-79 age group.

 The union minister of state for finance (banking, insurance & expenditure) Anandrao Vithoba Adsul said on Saturday that the government is considering making returns on the scheme tax free.

 If implemented, it will be a great boon for senior citizens who today enjoy zero tax liability plus exemption from tax deducted at source, where gross annual income amounts to Rs 1.53 lakh.

 Tax levied on returns from Varishta plan will effectively bring down the rate of assured return, in accordance with the tax rate.

 Today, income received from all pension schemes is taxable in the hands of the receiver. The centre