Financial Daily from THE HINDU group of publications
Tuesday, Jan 20, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jan 20, 2004 |
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Money & Banking
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Pension Plans Record-keeping body for pensions to be set up soon Our Bureau
New Delhi , Jan. 19 THE setting up of the Central Record-keeping Agency for the pension sector is entering its final stages with a host of players evincing interest in taking up the job. Leading contenders for the job include NSDL, CDSL, UTI Investor Service and the Stock Holding Corporation. The CRA, which would be given the task of maintaining records of transactions in the pension sector, is to be set up during the second quarter of the current financial year. During the interim period, the said Controller General of Accounts has been asked to carry out the function of the proposed Central Record-keeping Agency, the Joint Secretary (capital markets), Mr U.K. Sinha, has said. Speaking at the conference on new pension scheme, Mr Sinha said there was a need for CRA to enable employees to shift from one pension fund or scheme to another without incurring high transaction costs and undue time lag, as it was seen in mutual funds. ``Our depositories are now capable of handling records and transactions worth over Rs 5,00,000 crore,'' he said. Mr Sinha also said that said that pension contribution of the new Government employees would be exempt from tax during the accumulation stage but would be taxed at the prevailing rate at the time of withdrawal of funds upon retirement. ``The revenue department is working on the details and a separate Income Tax directive would be issued shortly,'' he said.
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