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Date: 2025-09-23 Category: Not Applicable State: Union Government Country: India

DFS releases detailed FAQs on the tax treatment under UPS; NPS Tax Benefits applicable to UPS

Issued by Ministry of Finance · Not Applicable

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Executive Summary & Key Takeaways

The Ministry of Finance announced the release of detailed FAQs by the Department of Financial Services (DFS) regarding the tax treatment under the Unified Pension Scheme (UPS) and the applicability of NPS Tax Benefits to UPS. The UPS was notified by the Ministry of Finance on 24.01.2025, via Notification No. F. No. FX-1/3/2024-PR, and is applicable to new recruits joining Central Government services on or after 01.04.2025, also offering an option to existing Central Government employees under NPS to opt into UPS. The Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on 19.03.2025. Employees can access the FAQs on the DFS website via the provided link: https://financialservices.gov.in/beta/sites/default/files/2025-09/FAQs-on-tax-treatment-under-Unified-Pension-Scheme-UPS.pdf. The last date for eligible employees and past retirees under NPS to opt for UPS is 30.09.2025. The Release ID is 2170306, and it was posted on 23 SEP 2025 at 8:05 PM by PIB Delhi.

Key Entities Referenced

Unified Pension Scheme (UPS): A pension scheme applicable to Central Government employees, offering an option to existing employees under NPS. Department of Financial Services (DFS): Releases FAQs on the tax treatment under the Unified Pension Scheme (UPS). Pension Fund Regulatory and Development Authority (PFRDA): Notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025. Ministry of Finance: Notified the Unified Pension Scheme (UPS).
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Ministry of Finance DFS releases detailed FAQs on the tax treatment under UPS; NPS Tax Benefits applicable to UPS Posted On: 23 SEP 2025 8:05PM by PIB Delhi The Unified Pension Scheme (UPS) was notified by the Ministry of Finance, Government of India, vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025. The scheme is applicable to new recruits joining the Central Government services on or after 01.04.2025, and offers an option to existing Central Government employees under NPS to opt into UPS. To implement this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on 19.03.2025. To support employees in making an informed choice, the Department of Financial Services (DFS) has released detailed FAQs on the tax treatment under UPS. These can be accessed on the DFS website or directly via the following link: https://financialservices.gov.in/beta/sites/default/files/2025-09/FAQs-on-tax-treatment-under-Unified- Pension-Scheme-UPS.pdf Employees are encouraged to peruse the FAQs and assess the benefits of UPS in alignment with their retirement planning goals. The last date for eligible employees and past retirees under NPS to opt for UPS is 30.09.2025. ******* NB/AD (Release ID: 2170306)

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