Comments on: Income Tax Dept allows deduction for Pension Contribution made by Employer http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html A Community Website for Govt. Officers Tue, 07 Sep 2010 16:40:48 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: admin http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9669 admin Tue, 30 Mar 2010 02:25:12 +0000 http://gconnect.in/gc/?p=1612#comment-9669 dear ak After 6 cpc basic pay means Band pay plus Grade pay for all purpose dear ak
After 6 cpc basic pay means Band pay plus Grade pay for all purpose

]]> By: a k http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9627 a k Sun, 28 Mar 2010 15:56:37 +0000 http://gconnect.in/gc/?p=1612#comment-9627 Is this basic pay means BP+ Grade pay or only BP? Is this basic pay means BP+ Grade pay or only BP?

]]> By: a k http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9624 a k Sun, 28 Mar 2010 15:46:18 +0000 http://gconnect.in/gc/?p=1612#comment-9624 the circular is not clearly answering my question? I will be thankful if u can answer... the circular is not clearly answering my question? I will be thankful if u can answer…

]]> By: admin http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9574 admin Sat, 27 Mar 2010 02:40:50 +0000 http://gconnect.in/gc/?p=1612#comment-9574 Please go through this GConnect article for deduction of amount contributed by employer for NPS http://gconnect.in/gc/service/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html Please go through this GConnect article for deduction of amount contributed by employer for NPS

http://gconnect.in/gc/service/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html

]]> By: a k http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9571 a k Fri, 26 Mar 2010 16:29:31 +0000 http://gconnect.in/gc/?p=1612#comment-9571 Please clarify as to whether the amount contributed by Central Government will be included in gross salary. My contribution= Rs 51000 under NPS & Govt Contributed Rs 51,000. Whether total 1,02,000 will be included under salary? If yes then there is no need for saving. If not then I have to save 49000 to in other mode to make it 100000 before 31st march. What should I do? Any circular/notification is available regarding this? Please clarify as to whether the amount contributed by Central Government will be included in gross salary. My contribution= Rs 51000 under NPS &
Govt Contributed Rs 51,000. Whether total 1,02,000 will be included under salary? If yes then there is no need for saving. If not then I have to save 49000 to in other mode to make it 100000 before 31st march. What should I do? Any circular/notification is available regarding this?

]]> By: AJAY http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-9025 AJAY Wed, 10 Mar 2010 14:03:40 +0000 http://gconnect.in/gc/?p=1612#comment-9025 actually this is a very cruel move by the government against the new pension scheme subscribers. the total amount of tax gained by the government by this way is negligible.  but it makes a big difference to the NPS employee. 1 lakh limit is nothing, so practically all the government contribution is taxable.  when the government is permanently withdrawing from its social obligations including providing a decent postretirement life to it employees; it is actually very very slimy and cheap to eat away even the miniscule benefits that they are now providing to NPS employees.  The NPS employees are severely discriminated against and there is no one to bother in the government. wish hell for this capitalist government and their multinational masters.  actually this is a very cruel move by the government against the new pension scheme subscribers. the total amount of tax gained by the government by this way is negligible. 
but it makes a big difference to the NPS employee.
1 lakh limit is nothing, so practically all the government contribution is taxable. 
when the government is permanently withdrawing from its social obligations including providing a decent postretirement life to it employees; it is actually very very slimy and cheap to eat away even the miniscule benefits that they are now providing to NPS employees. 
The NPS employees are severely discriminated against and there is no one to bother in the government.
wish hell for this capitalist government and their multinational masters. 

]]> By: Kamlesh Kumar http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-8988 Kamlesh Kumar Tue, 09 Mar 2010 03:08:32 +0000 http://gconnect.in/gc/?p=1612#comment-8988 Yes, Government is not doing justice with newly recruited employees in government on & after 1.1.2004 by imposing double taxation norms. Similar pension schemes are already in process in several autonomous government organizations and PSU/Private sector in which 12% employer contribution is not included at all for estimation of gross salary, hence , neither 12% employer contribution is added in salary nor deducted from total salary for this purpose it means 1,00000 limit is free for self contribution, LIC, Tution fee, NSC,PPF, ELSS etc. In my case this years total government contribution under NPS is 49000/- and self contribution is 49000/- so total is 98000/-, Tution fee for two children is 23000/- LIC is 22500/- there fore total saving is estimated around 143500/- however ,I can claim upto 1,00000 only so on 43500, I have to pay Income Tax @20% because due to government contribution I am coming under 20% income tax bracket , it means instead of benefit I am in loss. At the time of withdrawal from the scheme I have to again pay IT at higher rate @ 30% on total withdrawal it includes accumulated government contribution , self, appreciation on it , it could be 15,00000/- it means in entire service government will contribute 5,00000/ self 5,00000 and appreciation 5,00000 on which government will be taking back ITax @30% of total = 450000/- at the time of maturity and on government contribution of 5,00000/ government will be taking back through yearly IT say 20% of 5,00000 = 1,00000/-. It means government will take back 5,50,000/ in entire career but contribute only 5,00000/- in the name of new pension system, It means government will be consuming our hard earned 50,000.Therefore due to new pension scheme government is not benefiting by single paisa.In the case of old pension scheme government is giving full scope of 100000 saving includes GPF, LIC, Housing, Tution fee in addition of definite benefit pension at the time of retirements. Please clarify, how NPS is comparable with any other existing pension system. Yes, Government is not doing justice with newly recruited employees in government on & after 1.1.2004 by imposing double taxation norms. Similar pension schemes are already in process in several autonomous government organizations and PSU/Private sector in which 12% employer contribution is not included at all for estimation of gross salary, hence , neither 12% employer contribution is added in salary nor deducted from total salary for this purpose it means 1,00000 limit is free for self contribution, LIC, Tution fee, NSC,PPF, ELSS etc. In my case this years total government contribution under NPS is 49000/- and self contribution is 49000/- so total is 98000/-, Tution fee for two children is 23000/- LIC is 22500/- there fore total saving is estimated around 143500/- however ,I can claim upto 1,00000 only so on 43500, I have to pay Income Tax @20% because due to government contribution I am coming under 20% income tax bracket , it means instead of benefit I am in loss. At the time of withdrawal from the scheme I have to again pay IT at higher rate @ 30% on total withdrawal it includes accumulated government contribution , self, appreciation on it , it could be 15,00000/- it means in entire service government will contribute 5,00000/ self 5,00000 and appreciation 5,00000 on which government will be taking back ITax @30% of total = 450000/- at the time of maturity and on government contribution of 5,00000/ government will be taking back through yearly IT say 20% of 5,00000 = 1,00000/-. It means government will take back 5,50,000/ in entire career but contribute only 5,00000/- in the name of new pension system, It means government will be consuming our hard earned 50,000.Therefore due to new pension scheme government is not benefiting by single paisa.In the case of old pension scheme government is giving full scope of 100000 saving includes GPF, LIC, Housing, Tution fee in addition of definite benefit pension at the time of retirements.
Please clarify, how NPS is comparable with any other existing pension system.

]]> By: admin http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-8983 admin Tue, 09 Mar 2010 01:59:49 +0000 http://gconnect.in/gc/?p=1612#comment-8983 it would come under Section 80CCD it would come under Section 80CCD

]]> By: admin http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-8982 admin Tue, 09 Mar 2010 01:57:21 +0000 http://gconnect.in/gc/?p=1612#comment-8982 Your analogy may be sensible. But as per the recent clarification of Income tax department it's very clear Your analogy may be sensible. But as per the recent clarification of Income tax department it’s very clear

]]> By: j S panwar http://gconnect.in/gc/personal-income-tax/income-tax-dept-allows-deduction-for-pension-contribution-made-by-employer.html/comment-page-1#comment-8978 j S panwar Mon, 08 Mar 2010 19:48:17 +0000 http://gconnect.in/gc/?p=1612#comment-8978 sir, I am a central Govt. employee. Under NPS, how can contributions made by Govt/Employer be part of Rs 100,000 u/s 80 as it would be reducing the Rs 100000 limit by the contribution made by Govt /Employer. In the case of employee who has joined Cent. Govt before NPS issue . For him 100000 limit is in tact and at the same time Govt will also be giving Pension to him. Is It justified to include Govt contribution in Individual limit of 1lakh ? sir,
I am a central Govt. employee. Under NPS, how can contributions made by Govt/Employer be part of Rs 100,000 u/s 80 as it would be reducing the Rs 100000 limit by the contribution made by Govt /Employer. In the case of employee who has joined Cent. Govt before NPS issue . For him 100000 limit is in tact and at the same time Govt will also be giving Pension to him. Is It justified to include Govt contribution in Individual limit of 1lakh ?

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