PENSION

Retirement planning is perhaps the longest term goal for any individual. If the government wants to encourage long-term equity investments, it must remove the anomalies and inconsistencies in the taxation of the National Pension System (NPS). Right now, the scheme is treated as Exempt Exempt Tax (EET). This is at a sharp disadvantage to the other major retirement products such as the Employees Provident Fund (EPF) and the Public Provident Fund (PPF). It is high time that the NPS too is given the ..

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Helpful Tax, Investments and Retirement Jan 20

Viewed by 660

Umesh Kumar (Professor)

Not only the NPS but also all other retirement schemes from insurance companies registered with IRDAI and mutual funds from SEBI should be given EEE status as the savings and investment in working and younger age was for social security in retired/old age when neither there are much opportunities to earn nor an older person is much capable of working to earn in old age. It is also a misnomer to understand and propagate that older people do not have much liabilities. The medical expenses, disabilities and even the social expenses are much higher than in working age. Taxing pension is injustice to senior citizens of this countries when there are no other social securities from govt. With the advent of western culture the dependence on children in old age can not be counted now a days for old singular family or old singles. more

Jan 20

Prem Chandra (I retired as Chief Mechanical Engineer from Indian Railways)

i have retired recently from Railways and settled in Palava City Dombivali east. I want to consult someone on how to calculate my Income Tax for current year i.e 2015-16,.by taking into account interests on various FDs. How to minimize my tax liability and earn decent income from my funds. Prem Chandra more

Jan 20

Kanwarjit Singh

Here the payments are made by taxpayers out of their earnings and pension received is not a deferred income. This is an investment instrument and there is strong argument for making at par with other similar instruments by giving EEE treatment. The tax system has provisions reg senior citizens. So let us not get into that. more

Jan 20

Sabyasachi Chaudhuri (Investment and Retirement Solutions seeker.)

Yes, Mr.Prakash, I also read about it in ET but the question is that this EET of pension has resulted from us Indians' mentality of disregard towards our elders which has been tapped opportunistically by the political class. Since PPF and EPF are the savings by yournger people therefore the bureaucracy don't want to touch the red Hot rod called 'youth' . Instead wants to harass the elders who have much lesser energy and interest in protesting. One thing every youth of this country must understand and realize is that they too will surely be in the same soup in their future. Therefore everyone must understand each other (young people and elders) and always be together harmoniously so that no one can take advantage of a group of people's vulnerability. more

Jan 20