Income Tax: No TDS on NPS maturity proceeds

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May 10, 2017 3:30 AM

My National Pension System (NPS) investments will mature next year as I will turn 60. Will PFRDA deduct TDS on the maturity proceeds?

My National Pension System (NPS) investments will mature next year as I will turn 60. Will PFRDA deduct TDS on the maturity proceeds?

– Gautam Sharma

As per Section 10 (12A), the maturity proceeds up to 40% is exempt from tax. There is no provision for tax to be deducted at source by PFRDA for payment at maturity.

Will post office deduct TDS on maturity amount of National Savings Certificate? Will that reflect on my Form 26AS?
– BS Rao

There is no TDS liability on the maturity amount of National Savings Certificate. The subscriber has to himself pay tax on the taxable amount.

l I pay monthly rent of `s 15,000. Do I have to give my landlord’s PAN number in my income tax returns?

– Amit Kumar

As per Rule 26C, for claiming exemption on house rent allowance, an employee is required to furnish to his employer the permanent account number (PAN) along with the name and address of landlord where the rent paid during the financial year exceeds Rs 1,00,000. Accordingly, you have to furnish landlord’s PAN to the employer. However, there is no requirement to furnish PAN of landlord in your income tax return form.

If I make an investment in my child’s name, will I get income tax benefit?
– Vinod Kamat

There are certain avenues where you can invest in your child’s name, and on which parents get tax benefits. These are insurance endowment and ULIP policies, contribution to PPF and subscription under Sukanya Samriddhi Account Scheme. No additional deduction is allowed as these shall be clubbed under existing limit of `1,50,000 under Section 80C. Maturity proceeds from these are generally exempt from tax. However, any income generated from such investments has to be clubbed in the income of the parent who has higher income and taxed accordingly.

The writer is partner, Ashok Maheshwary & Associates. Send your queries to

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