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Tuesday July 7, 03:58 AM
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Source: Indian Express Finance
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Pension funds cheer Budget
By fe Bureau
The finance minister Pranab Mukherjee, in his Budget speech on Monday, said that all purchases and sales of equity shares and derivatives by the NPS Trust will be exempted from the Securities Transaction Tax(STT). H Sadak, chief executive officer, LIC Funds, said this budget is aimed at promoting inclusive growth and boost savings as IT limits have been raised.
The proposed rural development as mentioned in the Budget would create more jobs and generate more savings to be invested in schemes like the New Pension Scheme (NPS).
Removal of STT and dividend tax would increase returns on investments in NPS. More people would thus get attracted to invest in the NPS in the days to come.
"The exemption of STT is a welcome step, which will add more value to the NPS," UTI AMC's chief marketing officer, Jaideep Bhattacharya, said.
The step will be more beneficial for the NPS subscribers, as exemption of STT will bring in more funds for the NPS Trust. The net asset value will also increase correspondingly," said another pension fund company official.
