Latest Expert Exchange Queries
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 :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT Audit
« News Headlines »
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016

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 2016 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