Income Tax (IT) treatment of the New Pension Scheme: Fair?

Topic:	Income Tax (IT) treatment of the New Pension Scheme: Fair?
raagvamd Admin Posts: 11 Posted: 8.Jun 2008 - 21:47	The Pension Fund Regulatory and Development Authority (PFRDA) is seeking income tax exemption for the new pension scheme - just like the Public Provident Fund (PPF). The new pension scheme is taxed at the time of withdrawal, even when it is a 30-35 years investment instrument. (Comepare this with PPF, which is an exempt-exempt-exempt scheme - there is no income tax at any stage). This, when the new pension scheme is compulsory for the subscribers - unlike PPF, which is a voluntary scheme. What do you feel - is this correct and fair? Would love to hear your opinion.

Topic:

Income Tax (IT) treatment of the New Pension Scheme: Fair?

raagvamd

Admin
Admin

Posts: 11

Posted:
8.Jun 2008 - 21:47

The Pension Fund Regulatory and Development Authority (PFRDA) is seeking income tax exemption for the new pension scheme - just like the Public Provident Fund (PPF).

The new pension scheme is taxed at the time of withdrawal, even when it is a 30-35 years investment instrument. (Comepare this with PPF, which is an exempt-exempt-exempt scheme - there is no income tax at any stage).

This, when the new pension scheme is compulsory for the subscribers - unlike PPF, which is a voluntary scheme.

What do you feel - is this correct and fair? Would love to hear your opinion.