No income tax on universal pension scheme

The beneficiaries of universal pension scheme will not have to pay any income tax on their monthly instalments and profits coming from the scheme.
National Board of Revenue issued a circular signed by its chairman Abu Hena Md. Rahmatul Muneemin in this regard on Wednesday.
The government rolled out the much-anticipated universal pension scheme on August 17 with an aim to bring people under the coverage.
There are four different schemes -- Progoti, Surokkha, Somota and Probash—under the UPS to bring citizens from all walks of life under the pension facility.
According to NBR, the Sixth Schedule (Part-3) of the new Income Tax Act-2023 states that life insurance premiums, contributions to provident funds, contributions to recognized future funds, investments up to Tk5 lakh in government securities or mutual funds, Tk1.2 lakh per annum or Tk10,800 per month investment in DPS and investment in the stock market will get a tax rebate or tax exemption on that money.
In this case, 15% of the amount invested in the mentioned sector or less than Tk10 lakh, will be tax exempted. However, the sixth schedule does not mention pension scheme contributions.
On the other hand, Section 14 (1) (d) of the Public Pension Management Act-2023 states that the pension contribution will be treated as an investment and considered for tax deduction and the amount received for monthly pension will be exempt from income tax.
However, Section 76 (2) of the Income Tax Act provides that if a person is exempted from tax by any Act or instrument deemed to be an Act other than the Income Tax Act, the person shall be taxed by notification of NBR irrespective of what is contained in that Act or instrument deemed to be an Act.