Retirement
Pension sector needs tax incentives: PFRDA chief
Pension Fund Regulatory and Development Authority (PFRDA) chairman Hemant G. Contractor said on Wednesday that the government should consider offering tax incentives to the pension sector to expand its coverage to informal sector employees.
 
The PFRDA chairman said something needed to be done for the informal sector since it was inadequately covered under the pension scheme.
 
He was speaking on the sidelines of the launch of a Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG pension report.
 
The government-financed schemes were a must for the people in informal sector as they could not pay for their pension needs, Contractor said.
 
He said only 11 to 12 percent of India's working population in the organised sector were satisfactorily covered by pension schemes, mostly by government sector.
 
Contractor said parity in any tax treatment for National Pension Scheme (NPS) and waiver of service tax on purchase of annuity have been sought with the government.
 
Currently, the purchase of annuity attracts service tax.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Mr Jitendra

1 year ago

It is more than 11 years than the NPS was launched for Central and State Govt employees. It is now more than 6 years that the NPS was launched for general public and yet the general public is yet to appease that.
It is as simple as it is "ant and sugar". Unless you coat something with sugar, ants will not cling to it.

And so many PFRDA Chairman's have come and gone and asked the same thing from each govt: "give us EEE status" and yet not the UPA-2 and not the current government is ready to listen to that point.
UPA-2 worked on the DTC (Direct Tax Code) Bill, 2010. There were amendments made to dilute that original bill. Later, that DTC Bill 2013 was never taken on agenda.

I dont understand how the work happens at Lok Sabha, Rajya Sabha, PMO and other departments.

Moreover, there are no assurances from government that "people's money will be well managed" because the word "well managed" is quite ambiguous.
Another thing: NPS says that "compulsory annuity from a annuity provider is required at age 60". What is all annuity providers make a union and decide that they can offer only 3% interest rate on the NPS fund? See, the people demanding pension will be lakhs while the annuity providers will a certain few. Those few will easily exploit the NPS subscribers who will be retired from service.

MG Warrier

1 year ago

The PFRDA Chairman, by saying that “only 11 to 12 percent of India's working population in the organised sector were satisfactorily covered by pension schemes, mostly by government sector.”, is repeating the government’s arguments for introduction of NPS first for ‘future employees’ and then extending it to those in the unorganised sector. The main reason for discontinuing Defined Benefit Pension Scheme was increasing financial burden for the government. If NPS cannot become self-supporting, it can as well be scrapped and government should consider reverting to the pre-NPS situation when employees in the organised sector was covered by regular pension schemes and those outside were supported through other social security systems including EPF. The present NPS corpus could be transferred to EPFO for managing. PFRDA cannot expect government to subsidise NPS for all time to come. VII Pay Commission in Chapter 10.3 of its report has listed glaring deficiencies in the concept and administration of NPS. Remember, GOI had consciously excluded NPS from the ToRs of VI and VII CPCs.


Proposed H-1B visa cut counterproductive to US: Nasscom
National Association of Software and Services Companies (Nasscom) on Wednesday said the proposed 15,000 H-1B visa cut legislation introduced by two US senators will be counterproductive for the growth of the US technology industry.
 
“The recent legislation introduced to cut down the number of H-1B visas by 15,000 and proposing a priority parameter for highest wage earners will be counterproductive for the growth of the US technology industry,” a Nasscom statement said.
 
Earlier on Wednesday, Democratic Party senator Bill Nelson and Republican Party senator Jeff Sessions introduced the legislation in the Senate. 
 
With the proposed bill, the senators aim to directly target outsourcing companies that rely on lower-wage foreign workers who replace equally qualified US professionals.
 
If the proposed bill is passed, among other restrictions, it would require American employers to first strive to hire a US citizen and proceed to hire a H-1B visa holder only if they can't do so.
 
The premier industry body said the H-1B visa policy compensated the US for the shortage of skilled workers with a carefully calibrated approach that balances immigration with various measures to encourage Science Technology Engineering and Math (STEM) education and training for US citizens.
 
“The bill does nothing to address the root cause of the problem, STEM skills shortage in America, where H-1B and L-1 non-immigrants fill the skills gaps in the US economy and positively impact the ability of US-based companies to access global talent,” said the statement.
 
According to Nasscom, paucity of computer scientists, software developers and programmers in the US is getting compounded as their demand across all sectors in the US economy is only rising.
 
Nasscom highlighted several studies pointed to a four-fold vacancy rate rise in STEM jobs in the US compared to other sectors.
 
“India and US have built a strategic partnership across sectors and recognise that free movement of global talent is a critical success factor for this partnership. Discriminatory or protectionist measures would adversely impact the India-US trade,” the statement added.
 
The proposal will have repercussions on the Indian IT industry as H-1B visa is highly popular and well availed.
 
Currently, US issues a maximum of 85,000 H-1B visas annually.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Lalit S Kathpalia

1 year ago

The dependency of the Indian IT industry on the H1B visa is a very big constraint. The Indian IT industry will have to be innovative to get rid of this hurdle else be ready to see business being impacted due to the H1B visa limits

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