NPS Reform: Increased Flexibility and Tax Clarity Needed

The National Pension System (NPS) is getting a makeover to make it better.

Subscribers will now have more options to invest in stocks, or a mix of stocks and debt.

They can also withdraw more of their money when they retire.

NPS is cheaper than other investment options.

However, tax rules need to be clarified to ensure they stay beneficial.

This helps the NPS stay attractive, especially now that the government offers a different pension option (UPS) to its employees.

The government needs to resolve the differences in taxation of the old vs new income tax regimes.