Deduction For Agniveer 80CCH
Deduction often refers to a deduction as an expense that can be subtracted from a taxpayer’s gross income to reduce the amount of income that is subject to Taxation. Income Tax Act Contains Several Deduction For The Benefits Of Assessee Only eligible taxpayers can claim these deductions in their income tax returns. Such eligible taxpayers have been specified under various sections of the Act only those deductions which are allowable under the law can be taken to save tax Income tax deduction needs to be claimed at the time of filing the income tax return. Income tax deduction needs to be claimed at the time of filing your return not only to reduce the tax liability but also to encourage savings and investments amongst taxpayers. Not only in a savings plan, but you are also eligible to claim deductions on certain specified expenses.
What is Agniveer Scheme
The union cabinet of India approved one of the attractive schemes for Indian youth through which they can join the Indian armed forces. The name of this scheme is agnipath and the selected candidate under this scheme is known as agniveer, they would be from a distinct rank in the armed forces, different from any other existing ranks. several advantages have been had been provided by the government to this agniveer like payment of disability, compensation for death, and deductions under income tax.
Agniveer Corpus Fund
Agniveer Corpus Fund is a fund defined in para 2(c) of the Agnipath Scheme notified by the Central Government. In the Scheme, the Agniveer Corpus Fund is defined as a Fund in which consolidated contributions of all the Agniveers and matching contributions of the Government along with interest on these contributions would be held in their respective accounts
Deduction For Agniveer Under Section 80CCH
Every year a New budget is proposed containing different provisions and new limits, deductions, and other important provisions for financial development and smooth functioning. As per the Budget 2023, Government has proposed that the payment received from the Agniveer Corpus Fund by the Agniveers who have enrolled in Agnipath Scheme, 2022 as Earlier proposed to be exempt from taxes.
Deduction in the computation of total income is proposed to be allowed to the Agniveer on Deduction in the computation of total income is proposed to be allowed to the Agniveer on the contribution made by him or the Central Government to his Seva Nidhi account. Seva Nidhi’ refers to the salary package provided to an Agniveer by the Agniveer Corpus Fund.
A new section named 80CCH has been inserted by the government under the existing Act which provides that an assessee, who is an individual and has been enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November 2022, shall be allowed a deduction of the whole of the amount deposited by him and also the amount contributed by the Central Government to his account in the Agniveer Corpus Fund, from his total income.” not only this but it has also provided that maturity amount received from agniveer corpus fund is also exempt from tax, every Agniveer is responsible for contributing 30% of his monthly customized Agniveer Package to the Agniveer Corpus Fund. Furthermore, the government will make a matching contribution to the ‘Agniveer Corpus Fund’. The government will also pay the subscriber interest on the contributions in his account as approved from time to time. Upon completion of the four-year engagement period, Agniveers will be paid a one-time ‘Seva Nidhi’ package consisting of their contribution add interest and a matching contribution from the government equal to the accumulated amount of their contribution plus interest. Agniveer Corpus Fund account, and to exempt from tax any payment received by Agniveer or his nominee from the Agniveer Corpus Fund.
Section 80CCH has been proposed with the intention that this will provide deductions to individuals enrolled in Agnipath Scheme who is known as agniveer on or after 01st November 2022. According to the Income Tax Department, the deduction will be equal to the contributions made to the Agniveer Corpus Fund.
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