PFRDA now permitted Overseas Citizen of India (OCI) to enroll in National Pension Scheme (NPS)
The Pension Fund Regulatory and Development Authority (PFRDA) have now permitted Overseas Citizen of india (OCI) to enroll in the National Pension Scheme (NPS) at par with Non-Resident Indians. The government has specified that an OCI may subscribe to the National Pension System governed and administered by the PFRDA, provided such person is eligible to invest as per the provisions of the PFRDA Act and the annuity/accumulated saving will be repatriable, subject to the FEMA guidelines.
Contributions made towards the NPS are eligible for an additional tax deduction under section 80CCD(1B) up to Rs 50,000 which is over and above the Rs 1,50,000 limit of deduction available under section 80CCD(1).
In the Union Budget 2019, the tax exemption limit for lump sum withdrawal on exit/maturity from the NPS has been increased from the present 40 per cent to 60 per cent under section 10(12A) of the IT Act and the remaining 40 per cent of the corpus is already tax-exempt as it is mandatory utilized for annuity purchase. The PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS and the pension schemes to which this Act applies.