(a) the number of subscribers to the New Pension Scheme (NPS)
by the end of June,2009;
(b) whether there has been discrepancy regarding the tax relief
offered to subscribers prior to a certain date;
(c) if so, the details thereof and the reasons therefor; and
(d) the steps taken or proposed to be taken by the Government
in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a): The total number of subscribers in the New Pension System
(NPS) as on 30.6.2009 was 5, 40, 244.
(b) to (d): There were two main tax related issues pertaining
to NPS contributions. First, the benefit under Section 80 CCD of
the Income-tax Act, 1961 was restricted to the employees of the
Central Government/State Governments and other employees and
was not available to other individuals. Secondly, the
accumulated pension wealth was subject to tax at the time of
withdrawal. The Finance Bill, 2009 has proposed to extend the
benefit of Section 80 CCD of the Income-tax Act, 1961 to all
individuals. Further, it is also proposed to exempt from tax
all withdrawals if such amount is used for purchasing an
annuity in the same year.