Date of joining the Service


Date of joining the Service

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Date of joining the service in case of private sector employee not relevant for claiming tax benefits in respect of New Pension Scheme Section 80CCD

Date of joining the service in case of private sector employee not relevant for claiming tax benefits in respect of New Pension Scheme Section 80CCD [W.e.f. A.Y. 2015-16)

 

Under the existing provisions contained in section 80CCD(1), if an individual, employed by the Central Government or any other employer on or after 01-01-2004, has paid or deposited any amount in a previous year in his account under a notified pension scheme, a deduction of such amount not exceeding 10% of his salary is allowed. Similarly, the contribution made by the Central Government or any other employer to the said account of the individual under the pension scheme is also allowed as deduction under section

80CCD(2), to the extent it does not exceed 10% of the salary of the individual in the previous year.

 

Considering the fact that for employees in the private sector, the date of joining the  service is not relevant for joining the New Pension Scheme (NPS), the Act has amended the provisions of section 80CCD to provide that the condition of the date of joining the service on or after 01.01.2004 is not applicable to employees in the private sector for the purposes of deduction under the section 80CCD.

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