Alerts

PFRDA relaxes withdrawal norms under NPS

While NPS subscribers were permitted to make premature withdrawals a few years back, it was allowed only after they have been with the scheme for 10 years. Pension Fund Regulatory and Development Authority (PFRDA) recently relaxed the partial withdrawal norms further. Now, any subscriber who has completed three years after joining NPS can get this benefit. The other rules related to partial withdrawals remain the same. The withdrawal amount cannot be more than 25 per cent of contributions made by the subscriber. Only three withdrawals are allowed.

The purpose of withdrawal should be any of the following: higher education/marriage of child, construction of residential house or flat, treatment of subscriber, spouse, or children for specified illnesses such as cancer, kidney failure, stroke, paralysis.

Ujjivan Bank’s tax-saver FD

Ujjivan Small Finance Bank a wholly-owned subsidiary of Ujjivan Financial Services, has recently launched a tax-saver fixed deposit scheme. Under the scheme, customers can save on tax by getting tax exemption under Sec 80C of Income Tax Act, 1961. The minimum amount of deposit is ₹1,000 and maximum ₹1.5 lakh for a lock-in period of five years. Residents and Hindu Undivided Family are eligible to deposit under this scheme. Being a tax-saver scheme, the depositor needs to furnish the permanent account number (PAN) while opening the account. The depositors can opt for monthly, quarterly, or cumulative annual interest. Senior citizens will benefit from this scheme by getting additional 0.5 per cent interest.

₹10 coins are valid

With widespread reluctance to accept ₹10 coins from traders and merchants, the RBI has recently clarified that ₹10 coins are valid and legal tender which can be accepted for transactions. So far, the RBI has issued the ₹10 coins in 14 designs from time to time. Each has distinctive features to reflect various themes of economic, social and cultural values .

Revised GST rates

More good news for consumers as the GST council has revised rates further for an array of items and services. The tax on old and used large motor vehicles and SUVs has been lowered to 18 per cent; rates on cigarette filter rods, admission to theme/water parks are also reduced to 18 per cent.

Further, tax on all types of old and used motor vehicles, sugar boiled confectionary, drinking water packaged in 20-litre bottles is lowered to 12 per cent.

Mehendi paste in cones, LPG supplied to household dometic consumers by private distributors and tailoring services will be charged 5 per cent GST. De-oiled rice bran and rice bran will now be tax-free. The new rates of the council will be applicable starting from January 25, 2017.

COMMENT NOW