However, the government might take some more time to provide tax benefits for those opting for NPS at the time of withdrawal, a senior Pension Fund Regulatory and Development Authority (PFRDA) official told PTI.
"Exit stage may take a longer time for examination, but at entry stage (of NPS) we expect to come in the next budget," he said. The regulator has sought tax exemption for individual subscribers at all stages of the pension scheme --contributions, returns and withdrawal -- in line with other provident fund schemes.
However, there is no notification yet on entry-stage exemption, the official added.
PFRDA further said that the tax exemption issue at entry stage is under the active consideration of the government and expects the Budget to come out with some clarifications on the issue and that will give boost to the NPS.
The NPS was extended to all citizens from May one this year, but evoked lukewarm response with only 400 persons opening pension accounts so far.
