Nps Needs Tax Boost Under New Regime, Says Axis Pension Ceo

The National Pension System (NPS), India’s flagship retirement savings scheme, is facing challenges under the new tax regime. Axis Pension Fund CEO and Managing Director Sumit Shukla highlighted that the removal of the Rs 50,000 exclusive deduction for NPS contributions has weakened its appeal, particularly among private sector employees.  

Speaking to ANI, Shukla emphasized that tax incentives are critical to expanding NPS coverage beyond salaried individuals. He noted that while reforms have made the scheme more flexible, low awareness about retirement planning continues to be a hurdle. The industry has formally requested the government to reinstate the benefit in the upcoming Union Budget, positioning NPS as the default retirement product for the private sector.  

Key Highlights 

• NPS struggling under new tax regime due to loss of Rs 50,000 deduction  
• Axis Pension CEO calls for restoration of benefit in Union Budget 2026  
• Tax incentives seen as vital for expanding coverage beyond salaried Indians  
• Industry aims to make NPS the default retirement product for private sector  
• Low retirement awareness remains a major challenge despite reforms  

The demand underscores the importance of tax-linked incentives in driving retirement savings in India. With assets under management projected to grow significantly by 2030, restoring the deduction could strengthen NPS adoption and ensure wider financial security for future retirees.  

Sources: The Tribune, NewKerala, Economic Times