- Advertisement -
Home FINANCE Good News: All tax benefits available under NPS will also be applicable...

Good News: All tax benefits available under NPS will also be applicable to Unified Pension Scheme (UPS). Check Details

0

All the tax benefits available under the National Pension System (NPS) will also apply to the Unified Pension Scheme (UPS). Existing government employees who are already under NPS have also been given a one-time option to switch to UPS.

The Modi government has made another big announcement in the interest of central employees. Now all the tax benefits available under the National Pension System (NPS) will also be applicable on the Unified Pension Scheme (UPS). Through this, the government is trying to make UPS more attractive for central employees.

UPS is an alternative to NPS

Earlier this year, the Integrated Pension Scheme was introduced for central employees from April 1, 2025. It has been introduced as an option under the NPS. Existing government employees who are already under NPS have also been given a one-time option to switch to UPS. That is to say, it is not mandatory for central employees enrolled under NPS.

what did the government say

According to the information given by the Finance Ministry, employees choosing UPS will get all the tax benefits that are available under NPS. This includes TDS and other tax benefits, which make this scheme more financially attractive. This decision brings parity between the two schemes and gives a level playing field to employees choosing UPS instead of the traditional NPS.

Features of Integrated Pension Scheme

Unified Pension Scheme (UPS) provides a guaranteed pension. In this, the government gives 18.5 percent of the employee’s basic salary and dearness allowance. At the same time, the employee contributes 10 percent. This scheme has been introduced to replace NPS for new employees of the Central Government and as an alternative to NPS for existing employees. Talking about NPS, it is a retirement benefit scheme launched by the Government of India to provide regular income facility after retirement for all the subscribers.

Deadline to choose the option is 30 September

Recently, the government extended the deadline for employees to exercise their option under UPS by three months to September 30. Earlier, eligible employees, including existing government employees, retired employees and spouses of deceased retired employees, had to exercise their option under UPS by June 30, 2025.

Most Read Articles:-

-Advertisement-

Exit mobile version