Author Topic: Extra tax Benifit of investing rs 50000 under NPS  (Read 3976 times)

pulkit verma

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Extra tax Benifit of investing rs 50000 under NPS
« on: February 06, 2016, 04:49:42 PM »
Plz jekar kise nu sure hai taan eh dsso g ki NPS ch extra 50000 invest karan naal rebate kis tra milega.Govt. emloyee ne jekar 100000 ppf ch and 50000 LIC ch invest kita hai..and 70000 rs. (employee and govt share)usde pran account ch ja rahe ne taan ki oh 200000 rs di rebate layi eligible hai yaan us nu isto extra rs 50000 invest karne penge????
« Last Edit: February 08, 2016, 06:30:28 AM by <--Jack--> »

rajinder26

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #1 on: February 06, 2016, 05:07:00 PM »
Yes u can claim extra rebate of Rs 50000 only (not 70000).
150000 + 50000

lovelyfriendss

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #2 on: February 06, 2016, 08:39:58 PM »
This is a issue of discussion. Any way Lets discuss it-
 what i suppose that what Govt employees are contributing in NPS is a compulsory deduction under 80ccd (1). And the same amount that govt contribute in our NPS is a part of our income and needs to be added in our gross salary and later same is deducted under 80ccd (2). So if you want  deduction under 80ccd(1B) you need to invest additional 50000 in NPS (that is other than your compulsory contribution - which is only deduct-able under section 80ccd(1). )

THis screen shot is from IT department website - tax calculator.
« Last Edit: February 06, 2016, 08:57:07 PM by lovelyfriendss »

sandy@1234

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #3 on: February 07, 2016, 07:18:52 AM »
Recovery made from salary is counted while calculating tax or should be subtracted from total income

RK

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #4 on: February 07, 2016, 02:55:01 PM »
employee contribution of upto 50000/- may be shown in NPS
so total saving will be

150000 + 50000

jabir

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #5 on: February 07, 2016, 06:36:41 PM »
Govt employee NPS contribution fall in the category of EPF/CPF. If you want to take extra benefit of the rebate, you want to open new NPS account. Now you can add another fifty thousand in new account and get additional rebate i.e. 15000+50000/- 

jabir

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #6 on: February 07, 2016, 06:37:43 PM »
Govt employee NPS contribution fall in the category of EPF/CPF. If you want to take extra benefit of the rebate, you want to open new NPS account. Now you can add another fifty thousand in new account and get additional rebate i.e. 150000+50000/-

pulkit verma

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #7 on: February 08, 2016, 04:35:34 PM »
thnx lovely rnd..even i was thinking same that we need to invest extra 50000.

chanbajwa

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #8 on: February 11, 2016, 02:44:38 PM »
I GOT THIS FROM TAX GURU
DR. REENA KUMARI Says:

My name is DR. REENA KUMARI. I am an employee of CENTRAL GOVT. My query is regarding deductions u/s 80CCD. The query pertains to F.Y. 2015-16 and A.Y. 2016-17. The following are the tentative Income and savings detail for the A.Y. 2016-17:
1. Gross Income: 950000/-
2. Savings:
a) PPF: 1,50,000/-
b) NPS (own share): 74696/- (within 10% limit of total salary)
c) NPS (employer share): 74696/- (within 10% limit of total salary)
I want to claim deductions as per the following details:
1. u/s 80C: 1,50,000/-
2. u/s 80CCD(1B): 50,000/- (from the amount invested in NPS, own share)
3. u/s 80CCD(2): 74696/-
4. Total deduction: 2,74696/-
So, the taxable income remains = 675304/-.
Are my calculations correct? Am I correct in claiming the deductions as per the details given by me?
Please clarify.
REENA KUMARI
- See more at: http://taxguru.in/income-tax/s...


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    Dr. A B Bera REENA KUMARI 21 days ago

    Your calculation is correct.

    Formula is given below:
    Let your NPS is X

    Case1: X >= Rs.50,000/-
    a) First you set aside from X Rs.50,000/- for 80CCD(1B)
    b) Rest amount i.e., (X - 50,000)* will be added to your 80C block under Rs.1,50,000/- (Tot Sec 80E)

    * minimum of (X-50,000) or 10% of your (pay+Grade Pay+da) would be considered for addition to 80C block. It may happen when you pay more NPS in Tier II

    Case2: X < 50,000

    only X amount will be set aside for 80CCD(1B)

    No NPS amount is available for section 80C i.e., Max Rs.1,50,000/- block
    He will get benifit Max Rs.1,50,000/= + X

    Regards;
    Dr. A B Bera
   
    Reply
   
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« Last Edit: February 11, 2016, 02:47:26 PM by chanbajwa »

chanbajwa

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Re: Extra tax Benifit of investing rs 50000 under NPS
« Reply #9 on: February 11, 2016, 03:00:34 PM »
according to above clarification first we have to deduct 50000/- under section 80ccd(1B) and then remaining amount of NPS contribution will be added in saving under section 80c

 

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