Hi everyone I need a help .. Just wanted to know that my father is a retired state government employee. Can he opt in for the 80CCD(2) and claim a tax deduction benifit? The total income is over 9 lks so which tax regime will be better.
Hi everyone I need a help .. Just wanted to know that my father is a retired state government employee. Can he opt in for the 80CCD(2) and claim a tax deduction benifit? The total income is over 9 lks so which tax regime will be better.
Yes. NPS contribution in Tier 2 can be claimed by any citizen upto 50,000/- per annum. Old regime is better if you are claiming maximum deductions and exemptions under various sections. If not, New regime may be opted
Hi everyone I need a help .. Just wanted to know that my father is a retired state government employee. Can he opt in for the 80CCD(2) and claim a tax deduction benifit? The total income is over 9 lks so which tax regime will be better.
Since your father is retired from service & section 80CCD(2) is for contribution by employer, he cannot avail the deduction. Tax regime depends on how much tax savings he does in old regime
Yes. NPS contribution in Tier 2 can be claimed by any citizen upto 50,000/- per annum. Old regime is better if you are claiming maximum deductions and exemptions under various sections. If not, New regime may be opted
Tier 2 of NPS doesn't provide any tax benefit. I think you wanted to refer 80CCD(1B). That too is possible if he decided to continue the NPS with contribution
Tier 2 of NPS doesn't provide any tax benefit. I think you wanted to refer 80CCD(1B). That too is possible if he decided to continue the NPS with contribution
Sorryy, I wrongly mentioned Tier 2. It's Tier I NPS Account. Yes. Under 80CCD (1B) deduction of Rs upto 50,000.00 every year in addition to 1.5L admissible under 80C and related deductions.
Investment in in normal MF through SIP don't give any deductions. Tax saver MFs with 3 years Lock in period are included in deductions of 1.5L only.
But Investment in NPS Tier I gives additional Rs 50,000.00 deduction
It means Rs 2500/- to 15000/- (5% to 30%) tax saving every year on Rs 50,000.00 invested in NPS depending on applicable tax slab in old regime, apart from the actual returns on Rs 50000/- invested in NPS.
