The Cabinet has approved changes to National Pension Scheme or NPS which will make the pension plan at par with other schemes like PPF and EPF. The government granted NPS exempt, exempt and exempt or EEE status, which means that like PPF (public provident fund) or EPF (employee provident fund) investment at the investment stage, accumulation and withdrawal stage will be tax free. Earlier, NPS only enjoyed exempt, exempt and taxable or EET status, meaning that on withdrawal NPS was partially taxable. These changes were approved by the Cabinet in its December 6 meeting but their announcement was delayed due to state elections.
