Download the Income Tax Preparation Excel Based Software which can prepare at a time your Tax Computed Sheet+Automated Arrears Relief Calculator + Automatic HRA Calculation+Automated Form 16 Part B and Automated Form 16 Part A&B for the Financial Year 2013-14
Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, and the 80CCD(2) allow to deduction which contribution by the Employer to the employees Pension Fund,on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites).
As
per Section 80CCD(2), where an employee receives any contribution in the said
pension scheme from the Central Government or any other employer then the
employee shall be allowed a deduction from his total income of the whole amount
contributed by the Central Government or any other employer subject to limit of
10% of his salary of the previous year.
However,
if any amount is standing to the credit of the employee in the pension scheme
referred above and deduction has been allowed as stated above and the employee
or his nominee receives this amount together with the amount accrued thereon,
due to the reason of
(i) Closure or opting out of the pension scheme or
(ii) Pension received from the annuity plan purchased and taken on
such
closure or opting out, then
the amount so received during the Financial Years shall be the income of the employee or
his nominee for that Financial Year and accordingly will be charged to
tax.
Where
any amount paid or deposited by the employee has been taken into account for
the purposes of this section, a deduction with reference to such amount shall
not be allowed under section 80C.
Further
it has been specified that w.e.f 01.04.09 that any amount received by the
employee from the new pension scheme shall be deemed not to have received in
the previous year if such amount is used for purchasing an annuity plan in the
previous year.
It
is noted that as per the section 80CCE the aggregate amount of deduction
under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,00,000/-.
However the contribution made by the Central Government or any other employer
to a pension scheme u/s 80CCD(2) shall be excluded from the limit of
Rs.1,00,000/- provided under this Section.
0 Comments