New Delhi: Talking about your income tax, the government is going to be important for economic development over time. Seen as a responsible citizen, you need to pay your taxes at all times.
Many provisions have been made in the Income Tax Act of 1961, which if seen in specific ways, you are getting the benefit of tax deduction on investments. Deduction under section 80CCD is being considered as one such option.
If seen from the central government, NCP has been established to take advantage of an organized pension scheme for Indian citizens. The main objective of NPS is to help individuals build a retirement corpus and take a fixed monthly payment so that they can lead a comfortable life after retirement.
This section is being done to explain the rules governing the income tax deduction available to individuals for NPS contribution.
However, it does not matter whether the contribution is made by a government employee, a private employee or a self-employed person. If the provisions of this section are seen from the age of 18 to 70 years, then it starts to apply to the Indian citizens who are contributing to the NPS. This is being extended to NRIs also.
key provisions
- According to this section, if we talk about the salary of the person, then 10% (Basic + DA) or 10% of his gross income is being considered.
- In the financial year 2017-18, if we look at the self-employed persons, after increasing this limit, it has been 20% of the gross total income, in which the maximum limit of Rs 1,50,000 for any financial year has been given. .
- A new amendment has been made in section 80CCD in the Union Budget (1B) of 2015 as sub-section 80CCD.
- This clause is going to apply only to the salaried employees and not to the self-employed persons. The deduction available under this section is in addition to the deduction available under section 80CCD(1).
- Section 80CCD(2) is being implemented to allow salaried persons to claim deduction of up to 10% of their salary, which includes basic pay and dearness allowance or equal to employer’s contribution to NPS. are done.
