Regulator PFRDA on Tuesday said funds transferred from provident fund account to National Pension System (NPS)
account will not attract any tax.
"The amount so transferred from recognised Provident Fund/Superannuation Fund to NPS is not treated as income of the current year and hence not taxable," it said while specifying procedure for effecting transfers.
Also, the transferred recognised provident fund or superannuation fund will not be treated as contribution of the current year by employee/employer and the subscriber would not be required to claim tax deduction.