‘Poor awareness leads to fewer NPS takers’

Ahmedabad: While corporates have made the EPF mandatory, there are a few who have actually signed up for the National Pension Scheme (NPS) for their employees. Experts say this is due to the poor awareness about the NPS among corporates as well as about the tax benefits related to the scheme.

With a view to promoting the scheme among corporates, Pension Fund Regulatory and Development Authority (PFRDA) along with Federation of Indian Chamber of Commerce and Industries (FICCI) organized a workshop on NPS in Ahmedabad on Friday.

Akhilesh Kumar, deputy general manager, PFRDA, said, “Corporates have their own challenges and limitations due to which only a few implement the system. In India, only 3,600 corporates are offering NPS to their employees. ”

The recent regulatory changes made in the NPS are positive and will help by way of better fund management, higher tax incentives and greater flexibility, said experts.

Other experts present at the workshop include C A Yogesh Shah, partner, Deloitte Haskins & Sells LLP, along with M Ismail Salam, manager, PFRDA, who gave insights on the tax benefits on NPS and the functioning of the system.