A retirement fund can be helpful for all age groups, but ideally one should start investing early to beat market swings and gain from compounding.
The government has not done its homework or made any attempt to forge a consensus on this matter that affects millions of people in the organised sector, says Harsh Roongta.
Defence Minister Manohar Parrikar adds that the matter will be resolved within two months.
The full grant of OROP would raise annual military pensions to Rs 75,000 crore, only slightly less than the salary bill of Rs 93,216 crore.
However, the government rejected the army's demand to implement the scheme with retrospective effect from June last year, when the Doklam face-off between Indian and Chinese armies had begun, official sources said.
It, effectively, means that employees can invest more in 80C instruments. At present, employees claim tax benefits under Section 80CCD for contributions made towards NPS by both him/her and his/her employer.
An increase in the farmer income support scheme PM Kisan Nidhi, the introduction of a 'robot tax' to fund reskilling of people who lose their jobs to artificial intelligence (AI), and a reduced income-tax (I-T) to bring relief to the middle classes - these are some of the items in the Budget wish list submitted by Sangh Parivar affiliates to Finance Minister (FM) Nirmala Sitharaman. Representatives of the affiliates of the Rashtriya Swayamsevak Sangh (RSS), such as the farmer organisation Bharatiya Kisan Sangh (BKS); trade union Bharatiya Mazdoor Sangh (BMS); Laghu Udyog Bharati, which works for micro and small industries; and Swadeshi Jagran Manch (SJM), which works on economic and policy issues, met the FM and other officials over the last couple of weeks as part of the pre-Budget consultations.
A pension disbursing bank can access the portal to get digital life certificate.
In a pension plan, a person makes an investment either by one-time payment or in instalments for a fixed period of time and in return gets a regular return either for a life time or for a fixed term depending on the plan.
Rescue teams on Friday used GPS coordinates from aerial drone pictures and cell phones, including the last location of people who lived in the landslides-hit areas of Wayanad to help locate survivors, amidst accelerated search operations after the completion of the 190-foot-long Bailey bridge by the Army.
Defence Minister Manohar Parrikar said most of the rest will get their new pension by Holi.
DA was last revised in September last year from 100 per cent of basic pay to 107 per cent.
The much-awaited minimum monthly pension of Rs 1,000 and a higher wage ceiling of Rs 15,000 for social security schemes run by retirement fund manager EPFO will be implemented from September 1.
In the event of the BJP's poor performance in the assembly polls this year and in early 2025, Modi's hold will get further weakened because he will no longer remain the invincible electoral persona tightly controlling the machine at his disposal, asserts Nilanjan Mukhopadhyay.
The government had earlier stipulated documents such as PAN card, matriculation certificate, passport, CGHS card and driving licence as proof of age for old pensioners.
The 40 per cent exemption benefit is applicable only for employees.
'Young investors with limited funds should ensure that investing in NPS does not crowd out their other, more liquid, investments.'
EPFO has an ambitious plan to settle the claims within few hours after filing of application
Retirement fund body EPFO net added 14.81 lakh subscribers in August 2021, reflecting a growing trend in net payroll for the first five months of this fiscal. The provisional payroll data of Employees' Provident Fund Organisation (EPFO) released on Wednesday highlights that it added around 14.81 lakh net subscribers during the month of August 2021, a labour ministry statement said. The data reflects a growing trend in net payroll for the first five months of the current financial year, it added.
'it's not just youth in India who are left behind because of their inability to find jobs; nearly two-thirds of Indian women of working ages do not participate at all in the paid labour force.'
NPS is a cost-effective instrument with low fund management and other fees. Unlike in mutual funds, investors get the benefit of tax-free rebalancing here.
Overseas Indian Affairs Minister Vayalar Ravi said the diaspora community has been contributing significantly to India's economy by sending billion of dollars in remittances and government is launching the scheme to support them on their return to the country.
NPS still has critics despite being in business for a decade and mopping Rs 24,000 crore as of 2013-14.
Signalling both change and continuity, India's new government, headed by Prime Minister Narendra Modi for a third consecutive term, got into work gear on Tuesday with cabinet ministers and ministers of state filing into their respective offices to assume charge.
EPFO is also contemplating providing permanent or universal account number to it all active members by October this year.
Union Agriculture Minister Arjun Munda on Tuesday said a law guaranteeing minimum support price (MSP) on crops cannot be brought in a hurry without consulting all stakeholders and urged the protesting farmer groups to have a structured discussion with the government on the issue.
The salary hike for government employees is likely to put an additional burden of Rs 24,000 crore on the state excheque.
Addressing a G20 Summit session, Modi also presented his '5-I' vision to maximise digital technology for social benefit.
An RBI-appointed panel on Monday recommended hosts of customer-centric initiatives for banks, including online settlement of claims by heirs of deceased account holders, flexibility for submission of life certificates by pensioners and a centralised KYC database. The report of the Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) has also suggested that the operations of accounts should not be stopped pending periodic Know Your Customer (KYC) updates. It recommended that there should be a time limit for the return of property documents to borrowers after the closure of the loan account, failing which a penalty should be imposed on the lender.
Union Cabinet, on Friday, may consider a three per cent hike in dearness allowance for central government employees following the rise in inflation.
Finance Minister Arun Jaitley said the government will safeguard interests of soldiers retiring at an early age through higher pensions.
The pension fund managers distribute products under the National Pension System.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
The Congress wants to reinforce the tax more powerfully now after its four generations reaped benefit of the wealth passed on to them, he said.
The finance ministry's proposal to increase equity exposure of non-government provident funds and superannuation funds from 5 per cent to 10 per cent may benefit only the high income group category and subscribers of the New Pension Scheme.
In an online chat with Rediff.com readers, G Srikanth, partner, GSV Associates, chartered accountants, Chennai and member of the Institute of Cost and Management Accountants, answered queries about the new income tax proposals mooted in the Union Budget 2020-2021.
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