Exempt, exempt, tax
Under EET, investement and interest are not taxed, but maturity proceeds are. It applies to the NPS - New Pension Scheme, but not to government run employee's provident fund and the public provident fund.
But will having retirement savings be taxed as income merely not just defer tax liability? Particularly in a country like India where there is no social security. A rethink may be in order.
But then, what about the argument that exemptions distort the tax system? They do after all. It is a quandry to be sure. Unless the quality of the expenditure improves, nothing can be fixed with just cause.
