What is agneepath Scheme 2022
1. The Ministry of Defence has introduced the Agnipath Scheme, 2022 (the Scheme) for enrolment of Agniveers in Indian Armed Forces.
2. It has come into force on 1st November, 2022.
3. In pursuance of implement Agneeepath Scheme the competent authority has launched non-lapsable dedicated Agniveer Corpus Fund in the interest-bearing section of the Public Account head.
4. The package given to an Agniveer from Agniveer Corpus Fund is called as ‘Seva Nidhi’.
5. Agniveer Corpus Funds means
A fund where contribution from all agniveer plus matching contribution by the Central Government plus interest thereon shall be held and these fund shall be administered by Ministry of Defence.
6. Feature of the Fund
I. Each Agniveer is to contribute 30% of his monthly customized Agniveer Package to the individual’s Agniveer Corpus Fund.
II. Government will also contribute a matching amount to the ‘Agniveer Corpus Fund’.
III. Government will pay interest on these funds @ as they prescribed from time to time.
IV. On completion of the engagement period of four years, Agniveers will be paid one time ‘Seva Nidhi’ package, which shall comprise
1. of their contribution including interest thereon
2. and matching contribution from the Government equal to the accumulated amount of their contribution including interest.
Income Tax Treatment
1. Under Section 17(1) the contribution given by the Government in the Agniveer Corpos Funds that would be Salary/ Income of that agniveer and shall be be included in the total income of that Agniveer.
2. Deduction Under newly inserted Section 80CCH : whole amount of Contribution made by Individual Agniveer and whole amount of matching contribution made by Government as included in total Income of agniveer in Section 17 (1)
3. Under Section 10(12C) : provide that any payment received from the Agniveer Corpus Fund by a person enrolled under the Agnipath Scheme, 2022, or the nominee of such person shall be exempted from income tax.
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