logo
Finance ministry extends NPS tax benefits to new Unified Pension Scheme

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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Centre moots ‘AVAS' sound alerts for e-vehicles when they move below 20kmph
Centre moots ‘AVAS' sound alerts for e-vehicles when they move below 20kmph

Indian Express

time2 hours ago

  • Indian Express

Centre moots ‘AVAS' sound alerts for e-vehicles when they move below 20kmph

The Central Government is planning to introduce a new regulation on electric vehicles that will require the manufacturers to install a device- called Acoustic Vehicle Alerting System (AVAS)- to generate sound if the vehicle is moving at the speed above zero to 20 kmph. The Ministry of Road Transport and Highways (MoRTH) has taken this step since most of the electric vehicles, including e-rickshaws, barely emit any sound at less than 20 kmph speed, increasing the chances of accidents if road users, especially pedestrians, are not alerted with some sound. AVAS is being mooted in the wake of the surge in the electric two- and three-wheelers and E-rickshaws have increased significantly over the years as their penetration even in the colonies of the city have gone high and they have become one of the most favoured vehicles for commuters for last mile connectivity. The ministry has published a draft guideline on automotive industry standards requiring fitting AVAS in electric vehicles for their reduced audibility. Sources said that the matter was discussed in the Central Motor Vehicles Rules – Technical Standing Committee (CMVR-TSC), which is the apex body for setting motor vehicle safety standards, and the final regulation will be issued soon. 'When an electric vehicle moves above 20 kmph speed, it generates some sound through its tyres. However, this is not the case when it is below 20 kmph. Given the government push, the number of electric and hybrid vehicles are increasing every year and especially E-rickshaws have grown in huge numbers even in much smaller cities. Considering the situation, there is a need to bring this regulation, so that any incident due to the sound can be avoided. Due to the quiet mode of these vehicles, Pedestrians, cyclists are not aware that a vehicle is coming from behind them, which leads to accidents,' said an officer. The officials said that the AVAS is mandated in electric and hybrid vehicles in countries like the United States, Japan. The Indian Institute of Technology, Delhi is also conducting a study on the need of AVAS in electric vehicles. 'The Society of Indian Automobile Manufacturers (SIAM), an apex body of vehicle manufacturers, approached for this study. It is still ongoing and we have not arrived at the conclusion yet. We are looking into the different aspects of the electric vehicle to find out if AVAS is needed in the electric vehicle or not,' said Dr Anoop Chawla, professor of Mechanical Engineering, IIT-Delhi. Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More

Canada hikes proof of funds for foreign students
Canada hikes proof of funds for foreign students

Hindustan Times

time4 hours ago

  • Hindustan Times

Canada hikes proof of funds for foreign students

Toronto: Prospective international students seeking higher education in Canada will have to furnish proof of funds beginning September this year that is over 10 per cent higher than the amount specified at this time. A new Canadian citizen takes a flag during a citizenship ceremony at Canada Place on Canada Day in Vancouver, British Columbia, Canada, on Tuesday. (Bloomberg) In an update to its proof of financial support norms for those applying for a study permits on or after September 1 this year, Immigration, Refugees and Citizenship Canada (IRCC) noted that the minimum amount required, not including tuition, will be CA$ 22,895 for the applicant alone. If the applicant is accompanied by family members, the amount increases. The current amount required for the applicant is CA$ 20,635, making the forthcoming hike nearly 11 per cent higher. Proof of being able to pay living expenses and other costs in Canada can be in the form of a bank account in the country with the balance available, a guaranteed investment certificate (equivalent of an Indian fixed deposit) for the amount, proof of a student or education loan from a bank, among other methods. Canada started taking measures with regard to international students since late 2023. On December 7 that year, IRCC announced for new study permit applications received on or after January 1, 2024, a single applicant will 'need to show they have CA$ 20,635 as against CA$ 10,000 earlier. The measure comes as the number of study permits issued to international students from India continues to plummet, down nearly a third in the first quarter of this year as against the corresponding period in 2024. IRCC data showed that the number of permits issued to students from India in the first quarter of 2025 was 30640, versus 44295 last year, a drop of nearly 31 per cent. Overall figures have also declined, falling from 121070 in 2024 to 96015 in the first quarter of 2025. This follows the trend of decreasing intake of international students after the Canadian Government started applying brakes on the influx in the last quarter of 2023. In 2023, Canada issued a total of 681155 study permits, with Indians comprising 278045 of them. Last year, that total slid to 516275 with the Indian component decreasing to 188465. Policy changes were instituted because record immigration was blamed, partly, for housing unaffordability, and pressure on health and transport infrastructure. After he led his party back to form the Government following the April 28 Federal election, Prime Minister Mark Carney made it clear that position will not change in the near future as he said temporary residents, including students and foreign workers, will not account for more than five per cent of the country's population by 2027. On September 18, 2024, IRCC stated the cap for issuing study permits for 2025 will be at 437,000, down from the target of 485,000 for this year. The 'stabilizing' 2025 figure will also apply for 2026.

How new Labour Codes will impact your salary, gratuity and provident fund payments once implemented
How new Labour Codes will impact your salary, gratuity and provident fund payments once implemented

Economic Times

time9 hours ago

  • Economic Times

How new Labour Codes will impact your salary, gratuity and provident fund payments once implemented

Getty Images The Labour Codes significantly influence various aspects of HR and payroll policies. The introduction of Labour Codes in India marks a significant shift in the landscape of employee benefits, rights and protections. As part of these reforms, four labour codes are designed to replace 29 current central labour laws relating to wages, social security, occupational safety and industrial disputes. India has a unique opportunity to become a manufacturing hub as companies adopt the "China+1" strategy. To attract foreign investments, it may be crucial to enforce labour codes that bring in transparency, simplification & digitization in compliance, provide flexible workforce models and ensure social security for all, making India more competitive in the global manufacturing landscape. Although all four Labour Codes were notified by 2020, their implementation has been pending for over four years. State governments are required to notify rules under these codes, and to date, 34 states and Union Territories have published draft or final rules under one or more of the labour codes. However, the Central Government is yet to announce the date of implementation of these labour codes. Impact of Labour Codes The Labour Codes are designed to empower employees by enhancing their rights and protections. Employees are encouraged to understand the implications of these changes and how they can benefit from in force, the Labour Codes may have an impact on employee hiring models, employee benefits and other HR and payroll policies affecting employees. Some key impact areas of the Labour Codes that impact employees are discussed below. Uniform definition of 'wages' Under the current laws, varying definitions of 'wages' / 'salary' are used to calculate benefits, leading to a lack of uniformity, multiple interpretations, and frequent litigation. To address this issue, one of the key changes introduced by the labour codes is the standardization of the definition of 'wages' for calculating benefits across all labour codes, including Gratuity, Provident Fund, Employees' State Insurance, and Statutory Bonus. Along with uniformity, the new definition also increases overall benefits in the hands of employees. For example, under the current law, an employee is eligible for gratuity on termination of employment at the rate of 15 days' basic salary for each completed year of service. Under labour codes, gratuity will be 15 days' wages (as defined in labour codes and will cover components other than basic salary also) for each completed year of Provident Fund, for 1 year from implementation of Labour Codes - if an employee's basic salary exceeds the threshold ceiling as defined under current scheme (currently, Rs. 15,000), there may be no impact on Provident Fund there is ambiguity regarding the coverage of various components of remuneration within the definition of 'wages' - which requires clarification from the authorities. Definition of 'worker' and its impact The definition of 'worker' under the labour codes closely aligns with the definition of 'workman' under the existing Industrial Disputes Act, 1947. Employees who are not engaged in 'supervisory', 'managerial', or 'administrative' roles may qualify as 'workers.'While the definition of 'workman' under current labour laws had limited applicability-primarily concerning industrial disputes and retrenchment-the definition of 'worker' in the Labour Codes is significantly classified as 'workers' will be entitled to additional benefits, including overtime pay, leave encashment, retrenchment compensation (where applicable). Moreover, there are specific provisions that apply exclusively to 'workers,' affecting various policy-related aspects, such as working hours, annual leave, standing orders, identifying employees who may qualify as 'workers' under the labour codes can be challenging due to the lack of clarity in the definition. The terms 'supervisory,' 'managerial,' and 'administrative' have not been defined, and its interpretation has been a matter of extensive litigation in the past (under the existing laws). Impact on HR / Payroll policies The Labour Codes significantly influence various aspects of HR and payroll policies. Some provisions within the Labour Codes overlap with existing state-specific Shops and Establishments laws (which are not subsumed under Labour Codes), leading to potential conflicts, particularly regarding working hours, leave, and similar working in organizations with operations across multiple states may notice variations in policies as they would depend on state rules under the labour codes. Furthermore, since certain provisions of Labour Codes apply exclusively to 'workers', it will need to be seen whether the policies would differ for different levels / bands in an organisation. Social security for gig and platform workers The Labour Codes formally define the terms 'gig worker' and 'platform worker' and also extend the coverage of social security benefits to such workers. Under the Labour Codes, the Central Government is empowered to formulate social security schemes for gig and platform workers covering life and disability cover, health and maternity benefits, old age protection etc. Such schemes may be funded by the Central Government, State Government and aggregators, who may be required to contribute 1-2% of their annual turnover towards the social security is a significant step towards providing social security to a segment of workforce that has largely remained unregulated up until now. Workforce models The Labour Codes explicitly prohibit the use of contract labour for the 'core activities' of an organization, except in certain exceptional circumstances. On the other hand, fixed-term employment has been officially recognized as a valid employment model, subject to specific conditions and compliance example, individuals may take up fixed term employment which will be valid for specific time-period instead of taking up permanent employment. If such fixed term employment is for more than 1 year, the employee will be eligible for gratuity under the labour codes which is only available after 5 years of employment under the current the codes empower states to implement flexible work arrangements. Some states, such as Haryana and Odisha, have included flexible working options in their draft rules, which also allow organizations to adopt a four-day work recognition of fixed-term employment and the introduction of flexible work arrangements provide employees with more options for work-life balance. Employees should explore these opportunities and discuss flexible working models with their employers. Way forward The new Labour Codes represent a transformative opportunity for employees in India, enhancing their rights and protections in the workplace. By getting to know these changes and actively engaging with their organizations, employees can ensure they benefit from better working conditions and opportunities that these reforms are designed to deliver. The article is authored by Puneet Gupta, Tax Partner, EY India (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store