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Union Budget 2016: Proposed benefits for pensioners

India Blooms News Service | | Feb 29, 2016, at 08:30 pm

#Arun Jaitley # Union Budget 2016 # Pro poor budget # rural budget # India economy

New Delhi, Feb 29 (IBNS) Union Finance Minister Arun Jaitley, while presenting the Union Budget 2016 on Monday, proposed several schemes for pensioners, including withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme(NPS).

He said pension schemes offer financial protection to senior citizens.

In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made after April 1, 2016.

Further, the annuity fund which goes to the legal heir after the death of pensioner will not be taxable in all three cases.

He also proposed a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit.

He proposed to exempt from service tax, the Annuity services provided by the National Pension Scheme (NPS) and Services provided by EPFO to employees.

Also, he proposed to reduce service tax on single premium annuity (Insurance) policies from 3.5% to 1.4% of the premium paid in certain cases.

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