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Case law › Notifications › 2020 › Notification No. 45/2020 [F. No.370142/26/2019-TPL] / SO 2232(E)
Notification 7 July 2020

Notification No. 45/2020 [F. No.370142/26/2019-TPL] / SO 2232(E)

Ministry of Finance

What this is

Notification No. 45/2020 [F. No.370142/26/2019-TPL] / SO 2232(E) was published on 7 July 2020. Its subject is Ministry of Finance.

What it does

In exercise of the power under clause (xxv) of sub-section (2) of section 80C of the Income-tax Act, 1961, the Central Government makes the National Pension Scheme Tier II - Tax Saver Scheme, 2020. It defines the authority as the Pension Fund Regulatory and Development Authority established under section 3(1) of its 2013 Act, and investment as a contribution to a specified account by a Central Government employee under the scheme. Clause 3 requires the assessee, being a Central Government employee, to contribute to a specified account activated by the authority on or after the commencement of the scheme, the minimum contribution to activate the account being one thousand rupees and the minimum subsequent contribution two hundred and fifty rupees. Clause 4 imposes a lock-in period of three years from the date of credit of the amount to the specified account, and clause 5 forbids assignment, pledge or hypothecation of the contribution during the lock-in period.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.3s.3
s.80Cs.2, s.123

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 7th July, 2020
S.O. 2232(E).—In exercise of the powers conferred by clause (xxv) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following scheme, namely:—

1. Short title and commencement.-(1) This scheme may be called the National Pension Scheme Tier II- Tax Saver Scheme, 2020.
(2) It shall come into force from the date of its publication in the Official Gazettee.

2. Definitions. - (1) In this scheme, unless the context otherwise requires,—
(a) "Act" means the Income-tax Act, 1961 (43 of 1961);
(b) "authority" means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act,2013 (23 of 2013);
(c) "investment" means contribution in an specified account by the Central Government employee in accordance with the scheme;
(2) The words and expressions used herein and not defined but defined in the Act shall have the same meaning as respectively, assigned to them in the Act.

3. Investment.- (i) The assessee, being a Central Government employee, shall make contribution to the specified account which has been activated by the authority in accordance with the provisions of this scheme read with the operational guidelines, if any, issued by the authority in this regard on or after the date of commencement of this scheme.
(ii) The minimum amount of contribution to activate the specified account shall be one thousand rupees and minimum amount of subsequent contribution shall be two hundred and fifty rupees.

4. Lock- in-period.-The contribution made under this scheme shall have a lock in period of three years from the date of credit of amount to the specified account.

5. Transferability.-The contribution made to the specified account shall not be permitted to be assigned, pledged or hypothecated during the lock-in-period.

[Notification No. 45 /2020/F. No.370142/26/2019-TPL]
GUDRUN NEHAR, Director Tax Policy and Legislation)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.

From when

The date of publication in the Official Gazette (the notification is dated 7 July 2020).

What to watch

Where you meet it

In a Central Government employee's claim to deduction under section 80C in his return, and in the statement of account issued for the Tier II specified account.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Notification No. 47/2020 [F.No.300196/13/2019-ITA-I] / SO 2327(E)  ·  Notification No. 44/2020 [F. No. 370142/24/2020-TPL] / SO 2227(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.