The government is moving ahead to make Pension Fund Regulatory and Development Authority 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 in Mumbai.
At present, pensions products are sold by both insurance companies as well mutual funds, which makes Insurance Regulatory and Development Authority of India and Securities and Exchange Board of India, 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, 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 for National Pension System instead of buying annuities, he said.
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