National Pension Scheme Tier II- Tax Saver Scheme, 2020 under Section 80C

National Pension Scheme Tier II – Tax Saver Scheme, 2020 under Section 80C – Notification No. 45 /2020 dated 07.07.2020

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 7th July, 2020

National Pension Scheme Tier II- Tax Saver Scheme, 2020 under Section 80C

S.O. 2232(E).—In exercise of the powers conferred by clause (xxv) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following scheme, namely:—

1. Short title and commencement.-(1) This scheme may be called the National Pension Scheme Tier II- Tax Saver Scheme, 2020.

(2) It shall come into force from the date of its publication in the Official Gazettee.

2. Definitions. – (1) In this scheme, unless the context otherwise requires,—

(a) “Act” means the Income-tax Act, 1961 (43 of 1961);

(b) “authority” means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act,2013 (23 of 2013);

(c) “investment” means contribution in an specified account by the Central Government employee in accordance with the scheme;

(2) The words and expressions used herein and not defined but defined in the Act shall have the same meaning as respectively, assigned to them in the Act.

3. Investment.– (i) The assessee, being a Central Government employee, shall make contribution to the specified account which has been activated by the authority in accordance with the provisions of this scheme read with the operational guidelines, if any, issued by the authority in this regard on or after the date of commencement of this scheme.

(ii) The minimum amount of contribution to activate the specified account shall be one thousand rupees and minimum amount of subsequent contribution shall be two hundred and fifty rupees.

4. Lock- in-period.-The contribution made under this scheme shall have a lock in period of three years from the date of credit of amount to the specified account.

5. Transferability.-The contribution made to the specified account shall not be permitted to be assigned, pledged or hypothecated during the lock-in-period.

[Notification No. 45 /2020/F. No.370142/26/2019-TPL]
GUDRUN NEHAR, Director Tax Policy and Legislation)

Click here to view/download the pdf

Also check the following links related to this topic:

National Pension Scheme (NPS) Rules on Voluntary Retirement

National Pension Scheme for Shopkeeper’s, Retail traders and Self Employed persons

PM-SYM: Prime Minister Narendra Modi Launched National Pension Scheme for Unorganised Sector

NPS Direct Remittance and SIP scheme – National Pension System for Central Govt Employees