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<h1>Finance Minister Proposes Tax Exemptions and Caps for Retirement Funds in General Budget 2016-17.</h1> The Union Finance Minister announced measures in the General Budget 2016-17 to enhance financial security for retirees. Key proposals include making 40% of the corpus withdrawn at retirement tax-exempt under the National Pension Scheme (NPS), superannuation funds, and recognized provident funds for contributions post-April 1, 2016. Additionally, annuity funds transferred to legal heirs will remain untaxed. A contribution cap of Rs. 1.5 lakh per annum for employer contributions to recognized Provident and Superannuation Funds was proposed for tax benefits. Service tax exemptions were suggested for NPS-provided annuity services and EPFO services, with a reduction in service tax on certain annuity policies.