Tax Treatment under Unified Pension Scheme – Central Board of Direct Taxes O.M.
No. 178/4/2025-ITA-1
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(ITA-I Division)
New Delhi, the 2nd July 2025
OFFICE
MEMORANDUM
Sub: Tax treatment under Unified Pension Scheme – reg.
Kindly refer to your OM F.No. FX-11/16/2025-PR dated
17.06.2025 received in this office by email from TPL Division. CBDT vide OM
E.No. 370149/84/2025-TPL dated 25.06.2025.
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2. In this regard,
it is stated that your Department Gazette issued notification dated 24th
January, 2025 regarding introduction of Unified Pension Scheme (UPS) as an
option under National Pension System (NPS). Further. it has been stated in your
OM dated 17.06.2025 that UPS has been introduced as an option under NPS. vide
notification dated 24.01.2025. for such central government employees covered
under NPS through an amendment to the said notification dated 22.12.2003. The
UPS is to the managed within the existing institutional NPS architecture
regulated by PFRDA.
5. Further, vide your OM dated
17.06.2025 it was requested to issue concurrence on the following: :
“The provisions of Section
80CCD (1), 80CCD (1B), 80CCD (2). 8OCCD (3). 8NCCD (4), 10(12A) and 10(128) of
the Income Tax Act, 1961, would he applicable mutatis-mutandis on Unified
Pension Scheme (UPS) as it is an option under National Pension System (NPS)”
4, With reference to the above it is concurred that the
provisions of Section 80CCD (1), 80CCD (1B). 80CCD(2), 80CCD(3), 80CCD(4).
10(12A) and 10(12B) of the Income Tax Act. 1961 would be applicable
mutatis-mutandis to Unified Pension Scheme (UPS) to the extent of limits as
provided in the aforementioned Sections. Any diversion regarding
payout/contributions shall require legislative amendment.
5. This issues with the approval of Member (IT). CBDT.
(Hardev Singh)
DCIT(OSD) (ITA-1)
Email ID : usital-cbdd[at]gov.in
FX-11/16/2025-PR
Government of India
Ministry of Finance a
Department of Financial Services
(Pension Reforms Section)
2nd Floor, Jeevan Deep Building
Parliament Street, New Delhi
Dated the 04th July, 2025
OFFICE MEMORANDUM
Sub: Tax Treatment under Unified Pension Scheme-reg.
The undersigned is directed to invite reference to this Department’s Gazette notification dated 24 January,2025 regarding introduction of Unified Pension Scheme (UPS) as an option under National Pension System (NPS).
2. Department of Revenue (DoR), vide their O.M. No. 178/4/2025-ITA-I dated 02.07.2025, has intimated that the provisions of Sections 80CCD(1), 80CCD(1B), 80CCD(2), 8OCCD(3), 80CCD(4), 10(12A) and 10(12B) of the Income Tax Act, 1961 are applicable mutatis-mutandis to UPS, subject to the limits prescribed therein. A copy of the said O.M. is attached herewith.
3. It is requested that the aforesaid O.M. may be circulated among all the existing employees, past retirees and spouses of the deceased retirees.
4. This issues with the approval of Competent authority.
Encl.: As above
(Harkesh Chander)
Under Secretary to the Government of India
8-1/PA-UPS/Implementation-2025/6046-6127
Government of India
Ministry of Communications
Department of Posts Dak Bhawan
New Delhi-110001
Dated:09.07.2025
To
1. All Heads of Postal Circles
2. All Heads of Postal Accounts Offices
Subject: Tax Treatment under Unified Pension Scheme- Reg.
Sir/Madam,
I am directed to forward herewith a copy of the O.M. F.No.FX-11/1 6/2025-PR dated 04.07.2025 of Ministry of Finance, Department of Financial Services regarding the aforesaid subject captioned above for information and necessary compliance.
2. Further, it is requested that the aforementioned OM may be circulated among all the existing employees, past retirees, and spouses of the deceased retirees.
Encl: As Above.
(Ram Kishan Sain)
Asst. Chief Accounts Officer(NPS)
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