Skip to main content

LTCG tax will not impact NPS, says PFRDA chairman

By
LTCG tax will not impact NPS, says PFRDA chairman
The LTCG tax proposal in the Budget 2018 will not have much impact on the National Pension Scheme (NPS), says Hemant Contractor, chairman of PFRDA
The proposal of long-term capital gains (LTCG) tax will not have much impact on the National Pension Scheme (NPS), a top Pension Fund Regulatory and Development Authority (PFRDA) official has said.“It will not have much impact on us. The investments in the National Pension System are made by our trust (NPS Trust) which is a tax-exempted body. As far as pension investments are concerned, LTCG will not have an impact,” PFRDA chairman Hemant Contractor said here on Tuesday.
However, it will have an impact on tier II accounts also known as non-pension account, he said on the sidelines of a conference on the NPS in association with Stock Holding Corp.NPS manages two types of accounts—tier I and tier II. “Tier II has no tax benefits. Tier II account would be impacted but investments corpus in tier II is much smaller,” Contractor said.
The Budget 2018 had proposed to re-introduce long-term capital gains tax on gains arising from the transfer of listed equity shares exceeding Rs1 lakh at 10% (excluding cess). The same also implies on mutual funds. The total NPS corpus is currently at Rs2.25 trillion from a base of two crore subscribers.
“Our subscriber base is growing by 27-28% a year. We just touched two crore subscribers’ mark. In March, there were about 1.54 crore subscribers. We expect to maintain the same pace of growth next year,” Contractor said. PFRDA also expects that its asset under management (AUM) would grow by 45-47% in the next year.
Speaking on the Atal Pension Yojana, he said the pension fund body has the target of reaching one crore subscribers under the Yojana by March 31. “We currently have about 88 lakh subscribers with Rs 4,000 crore and we are trying hard in the remaining days of the year to touch the target. Next year, we will try for another 50 lakh,” the PFRDA chief said.
The Mint, New Delhi, 15th February  2018

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more