Mumbai: Pension Fund Regulatory Development Authority (PFRDA) has welcomed the additional Rs 50,000 tax exemption on National Pension Scheme (NPS) but regretted that the Budget ignored the demand for the EEE status for such investments.
"Though I am yet to go through the Budget proposals in full, my understanding is that if one invests Rs 50,000 in NPS alone after already having invested upto Rs 1.5 lakh in other such financial tools which have been exempted from I-T, then one's tax-free investment may go up to Rs 2 lakh a year," PFRDA chairman Hemant Contractor told Press Trust of India.
This move will encourage people to go in for NPS in a big way, he added.
The PFRDA chief added that the Budget is mum on the industry's demand to accord the status of EEE (exempt, exempt and exempt) to the sector.
"There is no announcement of any EEE for the pension fund sector and hence it will continue to carry the status of EET. We had been demanding the EEE status to give a boost to the sector," he said.
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