Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt
 
 
News Headlines »
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers
 6 things to remember while filing your income tax return
 Want to save on tax? Here are deductions you can use while filing ITR
 July 31 Is Last Date For Filing Tax Return. Why Form 26AS Has To Be Checked

How to claim tax benefits on NPS?
May, 11th 2016

Do you know, what all tax benefits can be claimed under (National Pension System) NPS? Do you know there is an additional tax benefit on corporate NPS? What about maturity amount? To simplify things, here is a lowdown on what all tax benefits can be claimed under NPS.

Tax benefits for Individuals

You can claim a deduction of upto Rs1.5 lacs u/s 80CCE of the Income Tax Act. Remember, combined benefit of 80CCE and 80C cannot exceed the limit of Rs1.5 lakh
Additional Tax deduction benefit of Rs 50000 is also available u/s 80CCD (1B) over and above the limit of Rs1.5 lakh

For Employees
Under corporate NPS, an employee can claim up to 10% of gross income under ceiling of 1.5 lacs u/s 80CCE
Additional Tax deduction benefit of Rs 50000/- u/s 80CCD (1B) is also offered over and above sec 80 CCE
You can also claim tax benefit on employer's contribution (upto 10% salary )under 80CCD(2). Under this the income is not included in your taxable income resulting in tax-saving. The benefit is over & above both the sections 80CCE & 80CCD(1B).

For Employers

Contribution upto 10% of basic salary can be deducted as 'Business expense' from profit and loss account of the employer u/s 36.
At the time of Withdrawal

As per the scheme, you could withdraw 60 per cent of your corpus at age 60, and use the remaining to purchase a life annuity. The 60 per cent you withdrew was chargeable to tax earlier. With this budget, 40 per cent of that corpus is free and only 20 per cent is charged to tax. However, if you choose to invest even that 20 per cent in annuity, you have a completely tax-free option, except for the tax liability arising out your annuity income.
Sanjiv Bajaj- MD, Bajaj Capital, says, "The amount received as pension out of investment in annuity will be treated as income and will be taxed. Since employees would not be having other income (most of the cases), there will be hardly any tax or absolutely no tax on it, making NPS complete EEE."

On Death

If the person dies (either at the accumulation or annuity phase) the amount received will be tax exempted in the hands of nominee.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions