Finance ministry extends NPS tax benefits to new Unified Pension Scheme

The Finance Ministry has stated today that all tax benefits available under the National Pension System (NPS) will also apply to the Unified Pension Scheme (UPS). This marks a significant move that will make UPS more attractive for central government employees. In a bid to provide further impetus to the UPS, the Government has decided that tax benefits as available under NPS shall apply mutatis mutandis to UPS as it is an option under NPS,the Finance Ministry said. This means that tax benefits that are currently provided to Central Government employees under the NPS will also be available under the UPS though necessary adjustments in tax rules will be made to fit the context of the UPS.