Union Budget 2016
All that matters to you
Employee Pension Scheme (EPS)
The Government of India will pay contribute 8.33% for all new employees enrolling in EPFO for the first 3 years of their employment. Employees will be eligible if their salary is less than ₹ 15,000 and they have enrolled in the scheme for first time.
This scheme will encourage employers to recruit unemployed persons.
National Pension Scheme (NPS)
Withdrawal of up to 40% of the corpus at the time of retirement is tax exempt.
Any amount received by the nominee (upon the death of the employee) at the time of closure of account is referred to section 80CCD of the Income Tax Act. This amount will not be deemed income of the nominee and will be exempted from tax.