PIB Release ID: 2170306 dated September 23, 2025
Applicable Act/Rule: Income-tax Act, 1961; PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025
The Department of Financial Services (DFS), Ministry of Finance, has released detailed FAQs on the tax treatment under the Unified Pension Scheme (UPS), applicable to employees joining the Central Government services on or after April 1, 2025, and to existing NPS subscribers who opt into UPS.
The FAQs provide clarity on tax benefits under NPS applicable to UPS contributions, helping employees make informed decisions regarding their retirement planning. These FAQs are accessible on the DFS website and via the direct link: FAQs on Tax Treatment under UPS.
Eligible employees and past NPS subscribers can opt into UPS till September 30, 2025. The release encourages employees to review the FAQs to understand the implications of UPS contributions and associated tax benefits.
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