Pension regulator PFRDA is toying with the idea of allowing minors to directly open ‘National Pension System’ (NPS) accounts in their names, its Chairman Hemant Contractor has said.
“We are looking into it. There are some aspects that need to be discussed with the Finance Ministry,” Contractor told BusinessLine on the sidelines of an event focused on chartered accountants.
The main issue is that a minor in India is not legally allowed to enter into contracts. In several other jurisdictions, minors are allowed to open pension accounts. “The whole idea is to encourage savings for retirement at an early age,” Contractor said. Meanwhile, on the upcoming budget, Contractor said that PFRDA has this year too pitched for EEE (exempt-exempt-exempt) tax treatment for NPS.
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