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PFRDA likely to be sole pension regulator, seeks additional IT exemptions

At present, pensions products are sold by both insurance companies as well mutual funds, which makes Irdai and Sebi, as the regulators for those products

Press Trust of India  |  Mumbai 

Pension
At present, pensions products are sold by both insurance companies as well mutual funds, which makes Irdai and Sebi, as the regulators for those products.

The government is moving ahead to make Pension Fund Regulatory and Development Authority (PFRDA) 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 exemptions for contributions towards pensions to Rs 1 lakh under Section 80CCD (1B), PFRDA's Member (Finance) Supratim Bandyopadhyay, told reporters here.

At present, pensions products are sold by both insurance companies as well mutual funds, which makes Irdai and Sebi, as the regulators for those products.

"The in-principle approval has come from the Ministry for the Act amendment which will make the single regulator for pension products," Bandyopadhyay said.

He also said the authority expects the amendments to Act to be passed by the Parliament during the Budget Session.

In order to encourage more people to join the New Pension Scheme (NPS), 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 (SWPs) for (NPS) instead of buying annuities, he said.

First Published: Fri, December 20 2019. 21:30 IST
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