• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Govtempdiary

Govtempdiary is leading Central government employees news provider

  • Home
  • Aicpin
  • Recent Post
  • DA From January 2023
  • Pay Matrix
  • Dopt orders
  • Recent Govt Orders
  • DA News

Cabinet approves. 4% DA/DR



Pay Matrix7th Pay Commission Calculator
8th Pay commission NewsMACP Calculator
Gratuity CalculatorExpected DA From January 2023
CGE Holiday 2023 PDFCGHS Rate list PDF

KV Fees OnlineRecent govt order
Dopt Order 2023Aicpin

FCI Issues Circular on Income Tax Implications for NPS

March 6, 2023 Eliza

The Food Corporation of India (FCI) has issued a circular on February 13, 2023, providing clarification on the provisions under the Income Tax Act of 1961 related to the National Pension System (NPS). The circular states the implications of the current provisions of the Income Tax Act on the transactions made under the NPS. The circular is approved by the Executive Director (DCPS) and is signed by Hemant Kumar Varshney, AGM (DCPS).

Clarification on the provisions under Income Tax Act’ 1961 pertaining to NPS

FOOD CORPORATION OF INDIA
HEADQUARTERS
16-20, BARAKHAMBA LANE
NEW DELHI – 110001

No. DCPS / 1 / Wage Revision / 2017-2018

Dated: 13th Feb, 2023

Circular No. FCIDCPS-02/2023

Subject: Clarification on the provisions under Income Tax Act’ 1961 pertaining to National Pension System (NPS).
Implications of the prevalent provisions of Income Tax Act’1961 on the transactions affected under National Pension System (NPS) are stated hereunder:-

Sl. No.IssueClarification
1Eligible deduction on the contribution made by a Member Employee.Contribution by a Member Employee whether mandatory (being 2% of Salary) or voluntary, however, restricted to Rs. 50,000/- is an allowable deduction under Section 80CCD (1B).
2Tax implications on Employer Contribution to NPS.Employer Contribution to NPS shall be included in working out the ‘Value of Perquisite’ as per Rule-3.
3Applicable provisions on partial withdrawal from NPS.Lump Sum withdrawal for specified reasons, limited to 25% of the total contribution by Member Employee, is exempt under Section 10 (12B) of Income Tax Act’1961.
4Applicable provisions on ‘Premature Exit’ from NPS.Permissible withdrawal upto 20% of the Corpus of the Member Employee is taxable and is to be included as part of Salary and tax deductions may be applied thereupon. The remaining 80% corpus of the Member Employee shall have to be mandatorily converted in Annuity, which is taxable as per Tax-Slab in the year of payout.

This issues with the approval of the Executive Director (DCPS).

(Hemant Kumar Varshney)
AGM (DCPS)

Source: https://fci.gov.in/

FCI Issues Circular on Income Tax Implications for NPS

Download

Filed Under: CGE Latest News, Income tax, NPS, Recent govt orders March 6, 2023 Leave a Comment

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

CALCULATORS

  • Expected DA Calculator from January 2023
  • 7th pay commission calculator [updated]
  • Salary Hike Calculator for Government Employees
  • Promotion/MACP Option form Calculator
  • Next MACP Calculator
  • 7th Pay Commission Pension Calculator
  • GPF Interest Calculator 2022-23
  • Age Calculator
  • Gratuity Calculator
  • HRA Exemption Calculator

Pay Matrix

  • Defence Personnel
  • MNS Officers
  • Tamil nadu
  • Rajasthan
  • Odisha
  • Gujarat
  • Haryana
  • Jharkhand
  • Madhya Pradesh
  • Nagaland
  • Tripura
  • Uttrakhand
  • Assam
  • Bihar
  • CSD Car Price List 2023
  • Maruti CSD Car Price
  • afd.csdindia.gov.in login

Footer

Search

Copyright© 2010–2023

Central Government Employees News,7th Pay Commission News - Govtempdiary