Employer deducts this opted % of basic + DA (max 10%) from your CTC and deposit into NPS fund. It will not be shown as income on your income head. This policy is introduced in our company in FY 2012-13.
Pon
From India, Lucknow
604Pon
From India, Lucknow
Thank you Mr. Pon for sharing useful information. Whoever joined in Indian Air Force on or after 2003 (starting period is not confirmed) the Government has introduced this NPS. Hope this is the same what I feel.
From India, Kumbakonam
From India, Kumbakonam
@PON Sir,
Deductions from Employee Salary for PF / EPF / CPF / NPS are never shown as income, the only thing is these deductions from salary are eligible for exemption us Sec 80 C. I did not get your point. You mean to say before NPS was introduced in your company you did not have EPF / PF ???? Or even if you had EPF / PF then those deductions were not eligible for exemption us Sec 80C
From India, Madras
Deductions from Employee Salary for PF / EPF / CPF / NPS are never shown as income, the only thing is these deductions from salary are eligible for exemption us Sec 80 C. I did not get your point. You mean to say before NPS was introduced in your company you did not have EPF / PF ???? Or even if you had EPF / PF then those deductions were not eligible for exemption us Sec 80C
From India, Madras
Dear Ravi
The EPF/CPF/PF will attract tax benefits under Sec 80C of IT Act. But NPF is something different. It will be deducted from our salary in the name of NPS and it's accummulation will form corpus and from the interest from the corpus fund will be paid as Pension to the employees after the age of retirement. Hope this NPS will have been deducted from our income while calculating the IT with effect from 2012-13.
From India, Kumbakonam
The EPF/CPF/PF will attract tax benefits under Sec 80C of IT Act. But NPF is something different. It will be deducted from our salary in the name of NPS and it's accummulation will form corpus and from the interest from the corpus fund will be paid as Pension to the employees after the age of retirement. Hope this NPS will have been deducted from our income while calculating the IT with effect from 2012-13.
From India, Kumbakonam
Thank you everyone,
This has been very useful. What I have finally done is divided the necessary investment into 5 parts.
1. LIC insurance - 20K per year
2. Max ULIP plan - 20K per year
3. Max Pension plan - 10K per year
4. LIC term insurance for 1.5cr - 57K per year
5. Bonds - 20K
I'll look into NPF if it can add some more deductions.
I decided on the term insurance cause the returns from these insurance policies don't make much sense if we take inflation into account. But I do need risk cover for my family, which is why the major chunk of the investment goes into that.
Thanks everyone for putting in their cents - I am sure it will help all those who land up here for tax saving advice.
Regards,
Sid
From India, Gurgaon
This has been very useful. What I have finally done is divided the necessary investment into 5 parts.
1. LIC insurance - 20K per year
2. Max ULIP plan - 20K per year
3. Max Pension plan - 10K per year
4. LIC term insurance for 1.5cr - 57K per year
5. Bonds - 20K
I'll look into NPF if it can add some more deductions.
I decided on the term insurance cause the returns from these insurance policies don't make much sense if we take inflation into account. But I do need risk cover for my family, which is why the major chunk of the investment goes into that.
Thanks everyone for putting in their cents - I am sure it will help all those who land up here for tax saving advice.
Regards,
Sid
From India, Gurgaon
Dont know but tommorrow i will post a document abt npf and the date is 01-01-2004 refer this sample order https://docs.google.com/viewer?url=h...ice1.doc&pli=1
Now for our orgsn a govt one we wont have cpf we will have nps only so it is either nps or epf or cpf and not all pls correct me if am wrong i am accountant looking after all finance and account matters we recd similar letter from hq reg implementation of nps
From India, Madras
Now for our orgsn a govt one we wont have cpf we will have nps only so it is either nps or epf or cpf and not all pls correct me if am wrong i am accountant looking after all finance and account matters we recd similar letter from hq reg implementation of nps
From India, Madras
Look this link also New Pension Scheme (India) - Wikipedia, the free encyclopedia for us its compulsary for others its only tier 2 we have tier 1 compulsary and wont have pf or cpf henceforth
From India, Madras
From India, Madras
It's not clear what the maximum contribution per year is? In some places it says maximum 12,000 per year and on the ICICI bank page it says there is no maximum. And are these deductions over and above the 1,20,000 allowed via the two sections of insurance and bond? How much per year are we allowed to put in?
Regards,
Sid
From India, Gurgaon
Regards,
Sid
From India, Gurgaon
Dear Sid,
Only upto 10% of your Basic + DA is allowed for tax exemption.
Post the Union Budget 2011-12 NPS has been given a special tax treatment wherein NPS contributions of the
Employer have been taken out of the purview of Sec 80CCE. Meaning whereby that the employer’s contribution
to NPS can be debited to CTC of the Employee (shall not exceed the limit of 10% of Basic Salary). In summary,
contribution by employee from CTC via mode “CTC Debit” (Employer’s contribution) is eligible for additional
deduction from Gross Taxable Income subject to a cap of 10% of Basic Salary.
Government has proposed that the investments in NPS be made EEE (Exempt at deposit, appreciation and
withdrawal) under the Direct Tax Code (DTC).
Moreover, for employees who opt for NPS contribution through Salary Process, there is no need to submit
additional proof for claiming the tax deductions. The contributions made would get automatically updated in
your salary statement and will also be included in your Income Tax computation for the Financial Year.
Pon
From India, Lucknow
Only upto 10% of your Basic + DA is allowed for tax exemption.
Post the Union Budget 2011-12 NPS has been given a special tax treatment wherein NPS contributions of the
Employer have been taken out of the purview of Sec 80CCE. Meaning whereby that the employer’s contribution
to NPS can be debited to CTC of the Employee (shall not exceed the limit of 10% of Basic Salary). In summary,
contribution by employee from CTC via mode “CTC Debit” (Employer’s contribution) is eligible for additional
deduction from Gross Taxable Income subject to a cap of 10% of Basic Salary.
Government has proposed that the investments in NPS be made EEE (Exempt at deposit, appreciation and
withdrawal) under the Direct Tax Code (DTC).
Moreover, for employees who opt for NPS contribution through Salary Process, there is no need to submit
additional proof for claiming the tax deductions. The contributions made would get automatically updated in
your salary statement and will also be included in your Income Tax computation for the Financial Year.
Pon
From India, Lucknow
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