Alerts: Parity for all NPS subscribers

Employees contributing to the National Pension Scheme (NPS) under Section 10, Clause (12A), were allowed tax free withdrawal of 40 per cent during closure of account or on opting out. This exemption was not available to non-employee subscribers, which is now provided. Now, the benefit would remain the same for both employee and non-employee subscribers. This amendment will be effective from April 1, 2019 and apply from AY2019-20 onwards.

Import duty increased

Products like fruit juices, perfumes, automobile parts, footwear, jewellery, electronics, furniture, watches, toys and games get costlier, thanks to increase in import duty, in a bid to push forth ‘Make in India’. Fruit juices and vegetable juices now carry 50 per cent duty against 30 per cent earlier. A duty of 20 per cent will be levied on perfumes, footwear, jewellery, furniture, toys and games, higher than earlier duty structures. LCD/LED/OLED carry a higher 15 per cent duty against 7.5/10 per cent earlier.

SEBI widens incentives

Under the existing norms prescribed by SEBI, mutual funds are allowed to charge a maximum total expense ratio of 2.5 per cent of the fund’s net assets in case of equity funds. But an additional 30 basis points can be charged by the mutual fund if the inflows come from beyond the top 15 cities. Another 20 basis points can be charged on other permissible expenses in lieu of exit fee. SEBI has now widened the additional headroom for expanding into Tier-II cities by extending the incentive (30 basis points) to B-30 cities as well. But it has also clarified that the 20 basis points on exit load fee will not be applicable on the close-ended schemes.

PNB, SBI increase interest

Punjab National Bank has raised interest rates on term deposits of between ₹1 crore and ₹10 crore. Fixed deposits maturing between one year and three years will earn 6.25 per cent as against 5.5 per cent earlier. Deposits with more than three years maturity will earn interest of 6 per cent, up 75 basis points. Deposits with one-year maturity will earn 6.5 per cent up from 5.75 per cent earlier. SBI has also increased the interest on term deposits with effect from January 30, 2018. For instance, for deposits between two and up to 10 years, 6 per cent interest will be offered, up 75 basis points.

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