New Delhi, Feb 26 () Pension Fund Regulatory and Development Authority of India is expected to add around 10-12 lakh new subscribers to its two pension schemes in the current fiscal ending March, newly-appointed Chairman Supratim Bandhopadhyay said on Wednesday.By March-end, the pension fund regulator, which runs Atal Pension Yojana (APY) and National Pension System (NPS), is expected to have nearly 3.48-3.50 crore subscribers on board.Total number of subscribers under the two schemes were around 3.38 crore as of February 22, 2020."By the end of the fiscal if you look at APY, there may be another close to 8-10 lakh additions and another 1-1.5 lakh for NPS. So all taken together, around 10-12 lakh new customers should join our fold by March-end," Bandhopadhyay said. Total asset under management (AUM) for these 337.63 lakh subscribers stood at Rs 4,21,336 crore as on February 22, 2020, according to the PRFDA data.Bandhopadhyay, who took charge on February 21, 2020, was the Whole Time Member (Finance) in the PFRDA for two years.Earlier to this, he was with the Life Insurance Corporation (LIC) for around three-and-a-half decades. He is a science graduate and a qualified Chartered Accountant. KPM MRMR

PFRDA likely to add 10-12 new subscribers by fiscal-end: Chairman

New Delhi, Apr 10 () The Pension Fund Regulatory and Development Authority of India (PFRDA) on Friday said NPS subscribers will now be allowed partial withdrawal for covering expenses related to treatment of COVID-19. In a circular addressed to all stakeholders and subscribers under the National Pension System (NPS), PFRDA said, "In view of the decision of the Government of India, which has declared COVID-19 as a pandemic, it has been decided to declare COVID-19 as a critical illness which is life threatening in nature." The partial withdrawals shall be permitted to fulfil financial needs of the subscribers, if required to him/her against the request placed for partial withdrawals towards treatment of the illness of subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents, as per the regulations, PFRDA said in the circular. PFRDA clarified that the facility of partial withdrawal will not be applicable for Atal Pension Yojana (APY) subscribers. "We would like to clarify that presently, there is no provision for subscribers to make partial withdrawals under APY," PFRDA added. NPS and APY are the two flagship pension scheme run by PFRDA. Whereas the NPS is for the central, state governments, autonomous bodies and corporates, APY is mainly meant to cater to the pension needs of those employed in the unorganised sector. The majority chunk of India's workforce is employed into the unorganised sector. As on March 31, the total number of subscribers under NPS and APY stood at 3.46 crore. Of this, the number of APY subscribers were 2.11 crore, as per data from PFRDA. KPM HRS

COVID-19 treatment: Govt allows partial withdrawal for NPS subscribers

Mumbai, Dec 20 () The government is moving ahead to make Pension Fund Regulatory and Development Authority (PFRDA) as the sole watchdog for all pension products in the country, a senior official from the agency said on Friday.
 In its pre-budget proposal, the body has sought for a doubling of the Income Tax exemptions for contributions towards pensions to Rs 1 lakh under Section 80CCD (1B), PFRDA's Member (Finance) Supratim Bandyopadhyay, told reporters here.
 At present, pensions products are sold by both insurance companies as well mutual funds, which makes Irdai and Sebi, as the regulators for those products.
 "The in-principle approval has come from the Finance Ministry for the PFRDA Act amendment which will make PFRDA the single regulator for pension products," Bandyopadhyay said.
 He also said the authority expects the amendments to PFRDA Act to be passed by the Parliament during the Budget Session.
 In order to encourage more people to join the New Pension Scheme (NPS), he said PFRDA has made the proposal for doubling of the tax deductions under the scheme.
 The body has also recommended that the government allow Systematic Withdrawal Plans (SWPs) for National Pension System (NPS) instead of buying annuities, he said. AA RAM

Govt to make PFRDA sole regulator for pension products: Official

New Delhi, Feb 1 () With an aim to strengthen the pension fund regulatory body's regulating role, Finance Minister Nirmala Sitharaman on Saturday proposed amendments in the PFRDA Act and forming of pension trusts by employees other than government.
Presenting the Union Budget 2020-21, the minister also proposed separating the role of the Pension Fund Regulatory and Development Authority of India (PFRDA) from that of trust for government employees.
"Regulating role of PFRDAI requires strengthening. Necessary amendments would be carried out in Pension Fund Regulatory Development Authority of India Act that will also facilitate separation of NPS trust for government employees from PFRDAI," Sitharaman said in her Budget speech in Parliament.
The Pension Fund Regulatory &amp; Development Authority Act was passed in September, 2013 and came to effect from February, 2014.
This would also enable establishment of a pension trust by the employees other than government, the minister said. 
"I am confident that this will motivate citizens to plan for their old age," she added.
Further, to help easy mobility while in jobs, she said the government wishes to infuse into the universal pension coverage with auto enrolment.
"Also, we wish to place such mechanisms which can enable inter-operability and provide safeguards for the accumulated corpus," she said.
The PFRDA regulates the National Pension System (NPS), subscribed by employees of central and state governments as well as by employees of private sector organizations those in unorganised sectors.
It also administers Atal Pension Yojana (APY), which mainly caters to the unorganised sector and low income groups.
As of November 9, 2019, the overall number of NPS and APY subscribers in the country crossed 3.12 crore with Asset under Management (AUM) of over Rs 3.85 lakh crore, as per the PFRDA data. KPM MKJ

Govt mulls separating PFRDA from govt staff trust, setting up pvt sector pension trusts

The taxation laws in India contain a number of provisions to let the tax payers save on taxes. By taking some informed decisions on how you spend and account, you can save on taxes in a legitimate way. Here we discuss some important deductions under the Income Tax Act 1961. Tips to save on income tax Make the right use of Rs.1.5 lakhs limit allowed under Section 80C Investing up to a limit of Rs. 1.5 lakh in schemes like Tax-Saver FDs, PPF (Public Provident Fund), ELSS Funds, NSC (National Saving Certificate), Life Insurance Premiums, National Pension System (NPS), Home Loan Repayment, Payment of tuition fees of your children, EPF, Senior Citizens Savings Scheme, and Sukanya Samriddhi Yojana can enable you for appropriate tax deductions depending on the case. National Pension System This deduction facilitated by Section 80CCD (1B) allows up to Rs 50,000 for contributing to the National Pension Scheme. The NPS makes it possible to invest in equity and debt pension funds for building a corpus for the retirement life. This can be withdrawn at 60 years of age. Health Insurance Premiums Paying for health insurance premiums can let you qualify for a deduction up to Rs 25,000 under Section 80D. This is permitted on top of all the deductions listed above. In case of senior citizens, this limit is up to Rs. 50,000. The taxpayer contributing towards health insurance premiums for himself as well as for a senior citizen can claim a combined deduction of up to Rs. 75,000 per annum. Deduction on your rent If you are getting HRA, it is possible to claim tax deduction on your House Rent. Though there is no upper limit specified for this, there are some rules that place a cap on the maximum deduction. If you do not get HRA but pay towards rent, a maximum claim of up to Rs. 60,000 per annum is allowed under Section 80GG. Deduction on the home loan interest When you have a home loan running, the interest you pay towards the home loan is tax deductible under Section 24 of the Income tax Act. The maximum limit that you can claim in this regard is Rs. 2 lakh. If the house is rented out, there is no upper limit. Money in your savings account The easiest way to save money on income tax is to keep some money in your savings account. Up to a limit of Rs. 10,000 per year, the interest on savings accounts is tax free under the Section 80TTA. In case of senior citizens, this limit is up to Rs 50,000 applicable in cases of both FD and savings account interest. Give for charity Donations made towards charity enable you for tax deductions. Though there is no upper limit for this, there are different rules that restrict the amount deductible on the contributions towards charities. Across a majority types of donations to the NGOs, this limit is fixed at 50% of the donated amount and up to 10% of the total income that is adjusted. If you want to claim this deduction, the NGOs to which you contribute must have 80 G certificate.

How to save Income Tax in India Schemes to Invest in 2019

<ul><li>The Indian government is planning to relax the employee contribution to Employees Provident Fund which will increase <keyword id="8029702" type="UNKNOWN" weightage="20" keywordseo="Take-home-salaries">take home salaries</keyword>. </li><li>As of now, both the employers and the employees each contribute 12% of the salary to the Employee Provident Fund Organisation</li><li>The government aims to lower the mandatory 12% by employees towards <keyword id="45027" type="ORGANIZATION" weightage="20" keywordseo="EPF">EPF</keyword>.</li></ul>The Indian government might be paving the way for higher takehome salaries by reducing the amount that has to be deposited with the Employees Provident Fund, <a href="https://www.business-standard.com/article/economy-policy/take-home-salary-may-rise-under-new-employees-provident-fund-law-119082700033_1.html">reported Business Standard.</a> As per a proposal, the government will decrease the rate of contribution for a specific class of workers<a href="https://economictimes.indiatimes.com/news/economy/policy/domestic-help-others-may-get-pf-benefits/articleshow/70848979.cms"> like domestic help, drivers, maids and other self employed workers. </a>However, the law does not suggest any change in the contribution of the employer's. Currently, all the employees who are earning upto ₹15,000 a month have to pay 24% of their salary. As of now, both the employers and the employees contribute 12% of the salary to the Employee Provident Fund Organisation. The government aims to relax the mandatory 12% contribution by the employee. Along with this, the government also wants to give employees an option to choose between all the schemes provided by the Employees Provident Fund Organisation (<keyword id="6372438" type="ORGANIZATION" weightage="20" keywordseo="epfo">EPFO</keyword>) and the National Pension System (NPS). If approved, an employee who is not satisfied with NPS can make a switch to EPFO. A first draft of the EPF &amp; MP (Amendment) Bill, 2019, has sought comments from stakeholders till September 22.

Take home salaries in India may rise at the cost of employee provident fund

New Delhi, Apr 9 () The government is planning to allow subscribers of the Atal Pension Yojana (APY) for a partial withdrawal from employees' contribution as the current lockdown to battle Covid-19 has crippled the monetary power of workers in the unorganised sector. The government circular would be out in a day or two for adding Covid-19 as one of the conditions for partial withdrawal from pension fund by APY susbscribers, Pension Fund Regulatory and Development Authority of India (PFRDA) Chairman Supratim Bandyopadhyay told ."In our regulation, we already have an enabling provision of partial withdrawal for specific purposes such as life threatening kind of emergency, or some kind of critical illness and the likes. There we have done a classification that it should include Covid-19 also," Bandyopadhyay said.He said PFRDA has requested the finance ministry for enabling this provision."May be today or tomorrow this circular will be out," said the chairman of the pension fund regulatory body.He said as in case of other contingencies of partial withdrawal, the limit of withdrawal has been kept same at 25 per cent of the fund accrued of employee's contribution of the pension amount. As on March 31, 2019, the number of APY subscribers was 2.11 crore. The total number of subscribers under APY and NPS stood at 3.47 crore.PFRDA runs two flagship pension schemes -- APY and NPS (National Pension System).While the NPS caters to the central and state governments alongside autonomous bodies as well as individual taxpayers, APY is largely targeted for workers in the unorganised sector.India's majority workforce is employed with this sector which is facing hardship due to the lockdown. Bandyopadhyay said there is unlikely to be any disruption in terms of PF contribution from NPS subscribers. With regard to large and medium corporates also PFRDA is not seeing any kind of disruption, however, there may be some challenges with respect to small corporates. But, he also clarified that since the PFRDA schemes are flexible in nature as there are no due dates to make contributions, one can add funds to pension accounts at any time during a fiscal year.Individuals, salaried or self employed, can also subscribe to the NPS scheme wherein investment of up to Rs 50,000 a year is allowed tax free. KPM KPM ANUANU

Govt to allow Atal Pension subscribers for partial withdrawal from PF fund amid COVID-19 :PFRDA

New Delhi, Apr 13 () In a major relief to Atal Pension Yojana (APY) subscribers in the wake of coronavirus pandemic, PFRDA has allowed deferment of their contribution until June 2020.The majority of APY subscribers belong to the lower strata of the society, and are expected to suffer the most during and after the lockdown.In such scenario, it may be difficult for them to keep contributing to the scheme regularly during such period, Pension Fund Regulatory and Development Authority of India (PFRDA) said in a circular.The outbreak of COVID-19 pandemic has impacted adversely to all the sections of the society. However, it is known fact that the disadvantaged and poor are most vulnerable to the economic effects of the said disease, it added."Therefore, it has been decided by the competent authority to stop auto-debiting savings account of the subscribers for APY contribution till 30th June 2020. "Also no penal interest will be charged to the APY subscribers if they regularize their APY accounts by depositing such non-deducted APY contributions along with regular APY contributions between 1st July, 20th and 30th Sept, 2020," PFRDA said.The regulator said that the modalities of payment of the allowed non-deducted APY contributions along with regular contributions will be out in due course."Keeping in view the above, all APY-SPs (service providers) are advised to stop auto-debiting the savings account of the subscribers for APY contribution amount with immediate effect till 30th June 20," it added.APY is a self contributory government guaranteed pension product which mainly caters to the people employed in the unorganised sector in India.Apart from APY, PFRDA runs the National Pension System (NPS) scheme which is for those employed in the organised sector and caters to people in the central and state government, autonomous bodies, corporate offices as well as salaried or self employed/business individuals.Last week, for the NPS subscribers, the pension fund agency has allowed for withdrawal to a certain limit from their accruals for Covid-19 related emergencies.As on March 31, 2020, the total number of subscribers under NPS and APY stood at 3.46 crore. Of this, the number of APY subscribers were 2.11 crore, as per PFRDA data.The total asset under management under these schemes stood at over Rs 4.17 lakh crore at the end of March 2020. Of this, the APY corpus was of Rs 10,526 crore. KPM KPM BALBAL

Covid-19: PFRDA allows deferment of Atal Pension subscribers' contribution till Jun

New Delhi, Feb 3 () The Budget prescribing a Rs 7.5 lakh per annum cumulative upper ceiling for tax-free contribution by employers under employee provident fund (EPF), National Pension System (NPS) and superannuation fund will impact only those with an annual salary of more than Rs 60 lakh, Revenue Secretary Ajay Bhushan Pandey said Monday.
 The proposal is not something unique to India as similar ones are followed in other countries as well, he said.
 Pandey further said taxing dividend income at the hands of the receiver is "most fair" rather than charging a dividend distribution tax (DDT) on the companies paying dividend because the rate of tax levied is then decided on the basis of the total income of the recipient.
 Speaking about the Budget provision that proposed a combined upper limit on tax-free employers' contribution towards the NPS, superannuation fund and provident fund at Rs 7.5 lakh annually for an employee, Pandey said if there is no limit, it will allow structuring of the salary into various components to lower the tax outgo.
 "If you consider the Rs 7.5 lakh (threshold), it will affect only those with an annual salary of more than Rs 60 lakh," Pandey said at a post-Budget interaction organised by Ficci.
 "Having no limit also allows structuring of the salary into various components where this particular thing could be hiked up and then actual tax could be very less. This threshold is not something very very unusual we have done. It is being developed in many parts of the world," he added.
 Under the existing provisions, the contribution by the employer to a recognised provident fund exceeding 12 per cent of salary is taxable.
 The Budget 2020-21 also proposed to withdraw DDT saying that henceforth, the tax will have to be paid by the recipients at the applicable rate.
 Currently, companies are required to pay dividend distribution tax (DDT) on the dividend paid to its shareholders at the rate of 15 per cent plus applicable surcharge and cess, in addition to the tax payable by the company on its profits. The total rate works out to be 20.5 per cent.
 Pandey said there has been a demand from every section of industry that DDT is "very very regressive" on many counts particularly for retail investors falling in lower tax slab and, hence, the government has accepted in principle that it should be taxed at the hands of investors at applicable rate.
 Also, foreign investors were unable to claim credit in their home country because DDT did not exactly qualify as an income tax.
 "We did a study on how dividends are taxed in various parts of the world. In many jurisdictions, it is taxed at the applicable rate and that seems to be most fair. The best option available is that it should be charged at the applicable rate and that should be (calculated as) part of income because every income is taxed at applicable rate and then nobody will have grudge," Pandey said.
 The DDT has been in place for more than 20 years. In 2002, it was abolished but in 2003, it was brought in again. JD DP HRS

Limit on tax-free employer contribution to retirement funds to impact those with salary above Rs 60 lakh

<ul><li>The 24-hour bandh began at 6 am and is expected to observe participation from over 25 crore workers.</li><li>Banking operations across the country will be hit as some <keyword id="144835" type="ORGANIZATION" weightage="20" keywordseo="Bank-Unions">bank unions</keyword> would be joining the <keyword id="187037" type="PERSON" weightage="20" keywordseo="Nationwide-strike">nationwide strike</keyword>.</li><li>The union representatives say that Tamil Nadu and Kerala have been affected the most so far due to the agitation as unions began a nationwide strike across the country. </li><li>In many states, auto and taxi drivers have decided to keep off the roads.</li></ul><keyword id="418098" type="ORGANIZATION" weightage="20" keywordseo="central-trade-unions">Central trade unions</keyword> are on a nationwide strike today to protest against various policies of the central government, from privatisations of public sector banks to new labour and farm laws. An estimated 25 crore workers are participating in the day-long strike called by ten central trade unions. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ten central trade unions that are a part of the nationwide strike </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indian National Trade Union Congress (INTUC) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">All India Trade Union Congress (AITUC) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hind Mazdoor Sabha (HMS) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Centre of Indian Trade Unions (CITU) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">All India United Trade Union Centre (AIUTUC) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Trade Union Coordination Centre (TUCC) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Self-Employed Women’s Association (SEWA) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">All India Central Council of Trade Unions (AICCTU) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Labour Progressive Federation (LPF) </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">United Trade Union Congress (UTUC) </td></tr></tbody></table> “The strike has begun. Kerala and Tamil Nadu are completely shut down. A similar situation is also developing in Odisha, Punjab, Haryana, Telangana and Goa. There is also a good response to the strike in Maharashtra,” AITUC General Secretary Amarjeet Kaur told PTI. What are they demanding? <ul><li>Unions have asked the Centre to provide 200 days’ work in a year at enhanced wages under the National Rural Employment Guarantee Act (MGNREGA) scheme.</li><li>Withdrawal of anti-farmer and anti-worker labour codes.</li><li>Scrapping of the National Pension System (NPS)</li><li>Restoration of the earlier pension scheme with improvement in EPS-95 </li></ul>They are also standing in solidarity with the farmers’ protest that has been gathering attention over the past few months. In a recent development, the Punjab farmers started assembling in large numbers as part of their ‘Delhi Chalo’ march to protest the Centre’s new farm laws. <div type="image" title="Bharat Bandh 2" msid="79423784" hostid="261"></div> Bracing overnight rains and chilly winds, thousands of protesting farmers on Thursday assembled at various places along the Haryana borders in Punjab. A huge contingent of police comprising the Rapid Action Force has been deployed to deal with any untoward situation. Banking operations hindered by the nationwide strike Banking operations across the country were impacted on Thursday with some bank unions joining the nationwide strike. Many lenders, including IDBI Bank and Bank of Maharashtra, in regulatory filings on Wednesday, said their normal working could be affected at the branches and offices. The All India Bank Employees’ Association (AIBEA), All India Bank Officers Association (AIBOA) and Bank Employees Federation of India (BEFI) are participating in the strike. The association represents majority of the banks, except State Bank of India (SBI) and Indian Overseas Bank. It has four lakh bank employees from various public and old private sectors. Tamil Nadu and Kerala have been affected the most The union representatives said that Tamil Nadu and Kerala have been affected the most so far due to the agitation as unions began a nationwide strike across the country. <div type="image" title="Bharat Bandh 3" msid="79423793" hostid="261"></div> “Visakhapatnam steel plant is affected due to the strike. Besides, the majority of workers in coal mines are also on strike. The work at copper plants, port and dock area are also affected. Delhi industrial areas are closed down. Workers would protest at Jantar Mantar,” Kaur said. The strike affects everyday life in West Bengal Normal life was partially affected in parts of West Bengal as mostly activists of CPI(M)- affiliated outfits like CITU and DYFI, brought out rallies in Jadavpur, Garia, Kamalgazi, Lake Town and Dumdum areas in and around Kolkata; disrupting traffic and asking shopkeepers to pull down the shutters of their establishments. A large police contingent was deployed to ensure normal plying of vehicles. Bandh enforcers also blocked roads in Coochbehar and Jhargram districts, burning tyres and breaking the windscreen of buses. The members of the Communist Party of India Liberation, CPI(M), and Congress also blocked the railway tracks in Jadavpur. The strike affects normal life across the country In many states, auto and taxi drivers have decided to keep off the roads. The federations of railway and defence employees have decided to have large mobilisation on Thursday to express solidarity with the striking workers. Workers in the unorganised sector such as domestic workers, construction workers, beedi workers, hawkers, vendors, agricultural workers, self-employed in rural and urban areas have also decided to come on to the streets for ‘chakka jam’,<a href="https://newsgile.com/2020/11/25/trade-unions-to-go-on-nationwide-strike-on-nov-26-25-crore-workers-to-take-part/"> the joint forum</a> of Independent Sectoral Federations and Associations in the central and state government employees said. <div type="image" title="b03b7ab747085dc06477f97db9cdc1dc" msid="79423824" hostid="261"></div> Demonstration across Odisha The Members of Odisha Nirmana Sramik Federation, All India Central Council of Trade Unions and All Orissa Petrol and Diesel Pump Workers Union held demonstrations across Odisha against the centre's new labour laws. (with inputs from agencies) SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/us-stocks-dip-from-record-levels-on-disappointing-economic-data-and-soaring-covid-19-cases/articleshow/79418413.cms" data-type="tilCustomLink">US stocks dip from record levels on disappointing economic data and soaring COVID-19 cases</a> <a href="https://www.businessinsider.in/sports/news/diego-maradona-one-of-the-greatest-stars-in-soccer-history-has-died-at-the-age-of-60/articleshow/79414628.cms" data-type="tilCustomLink">Diego Maradona, one of the greatest stars in soccer history, has died at the age of 60</a>

Bharat Bandh: Here’s how the nationwide strike by trade unions is affecting the daily life of citizens

<ul><li>The Employees' Provident Fund Organisation (<keyword id="6372438" type="ORGANIZATION" weightage="20" keywordseo="epfo">EPFO</keyword>) may reportedly raise interest rates from the current level at 8.55%, but if not, the current interest rates will not be narrowed further. </li><li>According to A Mint report, the retirement body reportedly earned a surplus of nearly ₹6 billion at the existing interest rates in 2018. </li><li>On an average, the interest rate of Public Provident Fund and the National Savings Certificate in 2018 was recorded to be 7.7%, said the report.</li></ul>India’s Employees' Provident Fund Organisation (EPFO) may reportedly <a href="https://www.livemint.com/Money/Nvur6XFW8DxbSvo7FtrADJ/Bonanza-for-salaried-employees-EPF-interest-rate-hike-likel.html">raise interest rates</a> from the current level at 8.55%, move likely to benefit over 60 million employees across different industries. Though the rates are expected to go higher, but if not, the current interest rates will not be narrowed further, Mint reported citing a member of EPFO's central board of trustees. Even if the current interest rates follow, it will be a favourable decision for the salaried employees. The interest rates are floated by the EPFO in December every year. However, this year, it will be declared on 1 February because of the ongoing audit. On average, the interest rate of Public Provident Fund and the National Savings Certificate in 2018 was recorded to be 7.7%, said the report. The Indian government recently made amendments in its regulations covering its retirement schemes — including directives of making tax-free withdrawals available to employees under National Pension System (NPS) and boosting the incentives to around 50% for health workers. The new interest rates will likely be in check with such announcements. According to the report, EPFO, which manages savings of over ₹11 trillion, reportedly earned a surplus of nearly ₹6 billion at the existing interest rates in 2018. If required, EPFO may use its equity investments, which have an estimated return of around 12% annually. Presently, it has invested over ₹500 billion in stock market. See also: <a href="https://www.businessinsider.in/the-indian-government-has-reportedly-invested-just-19-of-its-fund-dedicated-to-boosting-startups/articleshow/67323307.cms">The Indian government has reportedly invested just 19% of its fund dedicated to boosting startups</a> <a href="https://www.businessinsider.in/the-indian-government-is-looking-at-policing-online-content-on-social-media-including-breaking-end-to-end-encryption-report/articleshow/67230131.cms">The Indian government is looking at policing online content on social media including breaking end-to-end encryption: Report</a> <a href="https://www.businessinsider.in/the-indian-government-may-roll-back-a-tax-on-angel-investments-that-is-said-to-be-hurting-the-countrys-startup-ecosystem/articleshow/67177981.cms">The Indian government may roll back a tax on angel investments that is said to be hurting the country’s startup ecosystem</a>

The Indian government may mandate higher interest rates on its retirement fund scheme: Report

New Delhi, Dec 23 () Pension fund regulator PFRDA is pitching for doubling the tax benefit under the NPS to Rs 1 lakh in the upcoming Budget, according to a whole-time member of the authority.
 The Pension Fund Regulatory and Development Authority of India (PFRDA) has also urged the government to extend the facility of of tax free contribution of 14 per cent by the central government to its employees under the NPS to all categories of subscribers.
 The tax deduction under the NPS is Rs 50,000 at present.
 "For the Budget, we are trying to see that the Rs 50,000 investment which is tax free under National Pension System (NPS), it should be raised to an amount of Rs 1 lakh," PFRDA Whole Time Member Supratim Bandyopadhyay told .
 Employers' contribution of 14 per cent in pension for central government employees was made tax free from April 1, 2019.
 "We have requested that this facility should be extended to state government employees as well as the autonomous bodies of both central and state government," he added.
 For state government and autonomous bodies, as per the extant tax rules, up to 10 per cent of the employers' contribution is tax free and the rest 4 per cent is taxable at the hands of the employee.
 Maharashtra, Bihar, Karnataka, Uttar Pradesh, Uttarakhand and Himachal Pradesh have enhanced the employers' contribution under NPS to 14 per cent from 10 per cent earlier. While Punjab recently announced to raise its contribution to 14 per cent.
 "Apart from that we have been asking for increasing the age limit for subscription under Atal Pension Yojana (APY) from 40 to 60 years. And also to increase the pension limit from existing Rs 5,000 a month to Rs 10,000 per month under APY," Bandyopadhyay said.
 APY, the pension scheme for the unorganised sector employees as well as self earners, is sold to people under the age bracket of 18-40 years.
 Further, keeping in view a UN report which says that globally the population aged 65 and above is growing faster than all other age groups, he said the PFRDA is focussing in a big way on the APY to increase pension penetration in India.
 He said the pension regulator is conducting nationwide campaigns to bring more and more people in the informal sector to join the APY.
 When asked about gender wise subscription under the APY, he said it is majorly dominated by male participants, however, states like Tamil Nadu and Kerala show more and more women joining the schemes.
 "In places like Tamil Nadu and Kerala, we have seen that female participation is more because there our distribution channels are basically self-help groups (which are mainly run by women). One analysis is that when women subscribe to APY then their chances of staying with the system (APY) is more than male participants by 5 per cent," he said.
 He said the PFRDA has set a rough target of adding 75 lakh subscribers under APY in the current fiscal of which 47 lakh have already been added so far.
 "We have a very conservative target of 7.5 million under APY this year out of which we have already crossed 4.7 million and I believe that it is definitely possible (to reach the target) because the last three-four months like from December to March are the most productive months," he added.
 As of November 9, 2019, the overall number of NPS and APY subscribers in the country crossed 3.12 crore with Asset under Management (AUM) of over Rs 3.85 lakh crore , as per the PFRDA data.
 The PFRDA administers these two pension schemes. KPM KPM ANU
ANU

PFRDA wants govt to double tax benefit under NPS to Rs 1 lakh

<img class="gwt-Image" src="/photo/56623993.cms" />If you are going to buy shares for the first time, you can expect some respite when <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> announces <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a> on Feb 1. 
 
In a bid to encourage more people to move towards <a href="http://www.businessinsider.in/searchresult.cms?query=stock+market&amp;sortorder=effectivedate">Indian stock markets</a>, Indian government may announce tax breaks for first time direct equity investors. As per several reports, it is also likely that Jaitley may announce a new scheme in this regard or tweak the existing Rajiv Gandhi Equity Savings Scheme (RGESS) for attracting investment. 
 
The new or modified scheme will be under Section 80 (C) plan that will be likely be announced in the budget for 2017-18. 
 
Jaitley may raise tax breaks offered on money in a pool of savings instruments such as fixed deposits, insurance premium and mutual funds from Rs 150,000 to above Rs 200,000 a year. 
 
Presently, households enjoyed tax breaks on equity-linked savings schemes (ELSS) of mutual funds within the overall Rs 1.5 lakh limit under Section 80C of the Income Tax (I-T) Act and under 80CCD for National Pension System contributions up to Rs 50,000 a year. 
 
Meanwhile, RGESS may be tweaked as the scheme has not many takers due to complexity. 
 
Only new or first time retail investors with an annual gross income of less than Rs.12 lakh are eligible to invest in the scheme. 
 
The scheme also comes in with lock-in period of three years, with a fixed lock-in during the first year followed by a flexible lock-in for subsequent two years.

First time share buyer? Expect more tax breaks in Budget 2017

<img class="gwt-Image" src="/photo/51134008.cms" /> 
 Contributions made to the Atal Pension Yojana (<keyword id="2748077" type="UNKNOWN" weightage="100" keywordseo="APY">APY</keyword>) will now onwards be considered eligible for the same tax benefits as the National Pension System (<keyword id="118491" type="ORGANIZATION" weightage="100" keywordseo="NPS">NPS</keyword>). The regulations has been set by a circular released by the <keyword id="65338" type="ORGANIZATION" weightage="100" keywordseo="Income-Tax-Department">Income Tax department</keyword>. 
 
As per the circular, the tax benefits for contributions to APY would include the additional deduction of Rs 50,000 under section 80CCD(1) introduced in last year's Budget. 
 
Talking of the scheme, APY is open to Indians aged between 18 and 40 years and the minimum tenure is of 20 years. Ever since it was launched in June last year, it has seen nearly 20 lakh subscriptions. 
 
After its release, APY replaced the NPS Lite or Swavalamban scheme, which had received about 45 lakh subscriptions in six years of its release. 
 
However, not everything is in the favour of investors here. The government will contribute 50% of the contribution made by the investor for a period of five years, the benefit of which will only go to subscribers who put in less than Rs 1,000 a year and those who would join the scheme before March 31, 2016. 
 
It also means that investors with taxable income are also not eligible for the benefits. 
 
Amongst the 20 lakh subscribers, small-ticket investors contribute a major part. The AUM of Rs 328 crore is spread across 19.77 lakh accounts, which makes the average balance per account to be only Rs 1,640. In comparison to this, NPS Lite, the scheme that it had replaced which benefited from the market rally since 2010 has about Rs 1,982 crore spread across 44.63 lakh accounts, making the average to be 4,440 per account. 
 
<a href="http://www.telanganastateinfo.com/wp-content/uploads/2015/05/Atal-Pension-Yojana.jpg">Image source</a>

The Govt’s making a big bet on this Pension Scheme and it may just pay off!

<img class="gwt-Image" src="/photo/48000591.cms" /> Facing tough competition from the National <keyword id="6354432" type="UNKNOWN" weightage="60" keywordseo="pension">Pension</keyword> System (NPS), the <keyword id="393468" type="ORGANIZATION" weightage="80" keywordseo="Employee-Provident-Fund-Organisation">Employee Provident Fund Organisation</keyword> (<keyword id="6372438" type="ORGANIZATION" weightage="80" keywordseo="EPFO">EPFO</keyword>) has proposed to increase the insurance benefits under Employee's Deposit Linked Insurance Scheme (<keyword id="1709684" type="ORGANIZATION" weightage="80" keywordseo="EDLI">EDLI</keyword>) to 30 times the monthly wage as against 24 times. 

	After decades of wielding a monopoly over the retirement funds of workers in the organised sector, the EPFO is worried it could lose subscribers to the NPS, which has been offering better returns in the last few years—as much as 20% versus 8.75%, reported the Economic Times. 
 <keyword id="6567698" type="ORGANIZATION" weightage="80" keywordseo="Central-Provident-Fund">Central Provident Fund</keyword> Commissioner KK Jalan told the financial daily: "EPFO is exploring various options to incentivise its subscribers to keep money in <keyword id="45028" type="ORGANIZATION" weightage="80" keywordseo="Provident-Fund">Provident Fund</keyword> (PF) accounts.” 

	Currently, EDLI subscribers with over a year of service get 20 times the average monthly wage of the preceding 12 months along with a 20% bonus. At a monthly wage of Rs 15,000, this takes the total benefit under the scheme to Rs 3.6 lakh. 
 

	If the proposal goes through, this will rise to Rs 5.5 lakh, including 30 times the average monthly wage and the average balance in the PF account in the preceding 12 months along with a 20% bonus. 
 

	At a monthly wage of Rs 15,000, this takes the total benefit under the scheme to Rs 3.6 lakh. If the proposal goes through, this will rise to Rs 5.5 lakh, including 30 times the average monthly wage and the average balance in the PF account in the preceding 12 months subject to a ceiling of Rs 1 lakh. 
 

	Jalan said the proposal is pending with the labour ministry, which will take a call after stakeholder consultation. EDLI, which is applicable to all factories and establishments covered by the Provident Fund Act, provides for a lump sum payment to the nominated beneficiary in the event of the subscriber's death due to natural causes, illness or accident.
 

	It is entirely funded by the employer, which contributes 0.5% of monthly basic pay (capped at a maximum of Rs 15,000) as premium for life cover in case the organization does not have a group insurance scheme for its employees. 
 

	A total of Rs 697.7 crore was contributed under the scheme in FY14 and claims worth Rs 152.6 crore were settled. It is estimated that out of 4.5 crore EPFO subscribers, about 80 lakh opt for other private group insurance plans after seeking exemption from EDLI. 
 

	Improving the attractiveness of the PF and similar schemes under the law governing them has become a key challenge for the EPFO. Especially, as the government has decided to give formal sector workers a choice between EPFO and NPS. 
	 
	(Image: Indiatimes)

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