India’s Pensions Regulator has urged an increase in tax breaks on employer contributions to the National Pension Scheme (NPS) to match those of the provident fund. Currently, provident fund contributions are deductible up to 12% of the salary, while NPS contributions are only exempt up to 10%. The regulator aims to align NPS deductions with the provident fund’s 12% limit, eventually pushing for a 14% tax-free contribution limit, similar to government employees. This move seeks to provide consistent tax treatment for employer contributions to different pension schemes, promoting parity and simplifying regulations.
India’s Pension Regulator Seeks Tax Break Parity for Employer Contributions
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