New Delhi, March 7, 2017
Regulator PFRDA today said funds transferred from provident fund account to National Pension System (NPS) account will not attract any tax. “The amount so transferred from recognised Provident Fund/Superannuation Fund to NPS is not treated as income of the current year and hence not taxable,” it said while specifying procedure for effecting transfers. Also, the transferred recognised provident fund or superannuation fund will not be treated as contribution of the current year by employee/employer and the subscriber would not be required to claim tax deduction.
In 2016-17 budget, the government had announced that the subscribers from recognised Provident Funds and Superannuation Funds would be able to transfer their corpus from these funds to National Pension System (NPS) without any tax implication.
A subscriber planning to transfer his PF funds will have to approach the Provident Fund/Superannuation Fund Trust through the current employer.
The Pension Fund Regulatory and Development Authority (PFRDA) said the NPS is gaining momentum in comparison to other retirement products and it was receiving a number of queries related to transfer of amounts to NPS.
[The Financial Express]