No Taxes on Pension Funds and Provident Funds.

17.06.10 New Delhi : The Union Government has decided is exempt PF and Pensions (usually held by retired and old people) from taxation, while regular incomes will be taxed and such tax money would be deducted at source as per law.

The present Income Tax Act which is 50 years old, will be replaced by a new Act by the Finance Ministry to make amendments suitably. The tax money could be converted by the superannuated persons into savings bank accounts with interest payable to them. The limit for investment in various savings schemes is raised from Rs.1Lakh to Rs. 3 Lakhs. This revised bill needs Parliamentary consent.

The Centre has also decided to continue the concessions given on housing loans upto Rs. 1.50 Lakhs. Public opinion will be collected on these changes upto June 30, a press note said.