Daily Archive: Tuesday, April 11, 2017

Centre introduces provision of taxation on NPS in Income Tax Act

The monthly/periodic contributions during the pension accumulation phase were allowed as deduction from income for tax purposes. The provision that the withdrawal from the National Pension Scheme is taxed to the extent of 60 per cent has been introduced into the Income Tax Act, 1961 (‘Act’) vide Finance Act, 2016 by inserting clause (12A) in