pension scheme

Tax Treatment of Income from Salary in Brief

Income Tax - Salary is defined to include: a) Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance in Recognized Provident Fund j) Contribution by Cent...

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Section 80CCD Deduction to National Pension System subscribers

Income Tax - (i) Under the existing provisions of section 10 of the Act, any payment from the NPS Trust to an assessee on closure of his account or on his opting out of the pension scheme, to the extent it does not exceed forty per cent of the total amount payable to him at the time of […]...

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Response of Armed Forces on issue of taxability of disability pension

Income Tax - 1. Some veterans have highlighted the case of Maj Gen Ian Cardozo (Retired) to express resentment against the recent directive to not allow tax exemption for disability pension. 2. Disability is granted to personnel who are disabled in combat or, during peace time and their disability is attributable to service conditions. The latter have...

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FAQ on National Pension Scheme (NPS)

Income Tax - What is National Pension Scheme (NPS)? National Pension Scheme (NPS) was initially launched in January 2004 for government employees but then in 2009, it was made available to every citizen of India whether resident or non-resident aged between 18-60 years. NPS allows you to contribute regularly in a pension account during their working l...

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Higher Pension as per SC decision with Calculation & Examples

Income Tax - Employees’ Pension Scheme (EPS-95) offers pension on retirement, disablement, pension to widow and pension for nominees. This article explains how much EPS Pension you will get if you retire at the age of 58 years. Recently on 1st April 2019 Supreme Court has given the decision that the pension to be paid on actual salary rather than ...

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Modification in Partial Withdrawal rules under NPS

Income Tax - Modification in Partial Withdrawal rules under NPS: Partial withdrawals will now be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher education/ acquiring professional and technical qualifications. Further, individual NPS subscribers who wish to set up a new business/ acquire new b...

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‘View Pension Passbook’ Service for pensioners through Umang App

Income Tax - Employees’ Provident Fund Organisation (EPFO), which is providing a host of e-services for its stakeholders, has now introduced a new service through ‘UMANG app’. On clicking ‘View Passbook’ option, it requires PPO Number and Date of Birth information to be entered by the pensioner. ...

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Investment Limit for Sr Citizens doubled to Rs.15 lakh under PMVVY

Income Tax - The Union Cabinet chaired by chaired by Prime Minister Shri Narendra Modi has given its approval for extending the investment limit from Rs 7.5 lakhs to Rs 15 lakhs as well as extension of time limits for subscription from 4th May 2018 to 31st March, 2020 under the Pradhan Mantri Vaya Vandan Yojana (PMVVY) as part of Government's commitme...

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PFRDA prescribes New NPS Subscriber Registration Form

Income Tax - Pension Fund Regulatory and Development Authority prescribes New NPS Subscriber Registration Form – Additional Mandatory Requirements ...

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Three recent changes in National Pension Scheme (NPS)

Income Tax - The Government of India has recently made three changes in the National Pension Scheme (NPS) including withdrawal norms. The details are as under:...

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Family Pension claim not acceptable if option to join scheme was not exercised

Ganesh Prasad Mishra Vs Commissioner EPF Organization (Madhya Pradesh High Court at Indore) - The Hon'ble MP High court in the above stated case placing reliance on the decision of Hon'ble Supreme court in the case of Rajasthan State Road Transport Corporation vs. President, Rajasthan Roadways Union & Anr....

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Disability pension exempt for armed forces personnel of all ranks-CBDT

Circular No. 13/2019-Income Tax - (24/06/2019) - Exemption of service element and disability element of disability  pension granted to disabled personnel of armed forces who have been invalided on account of disability attributable to or aggravated by such service. CIRCULAR No. 13/2019 F. No. 173/250/2019-ITA-1 Government of India Ministry of Fin...

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Clarification to pensioners about suggestion to hike exemption limit to Rs. 5 Lakhs

D.O. No. 370150/9/2017- TPL - (14/11/2017) - Clarification to pensioners about the hike in exemption limit to Rs 3 Lakhs from Minister of State for Finance Shri. Shiva Pratap Shukla by his letter dated 14th November 2017....

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Simplification of pension procedure- Handing over of PPO before retirement

No. 1/27/2011-P&PW (E) - (01/08/2017) - Simplification of pension procedure – i) Handing over of PPO to the retiring employee by the Head of Office before retirement and (ii) Submission of undertaking by retiring Government servant along with pension papers ...

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Benefit of 2 Years weightage of Service under Employees Pension Scheme

Circular No. Pension- Pen-I/3/4/2016/MOL&E/2 - (08/05/2017) - In the case of the member who superannuates on attaining the age of 58 years, and who has rendered 20 years pensionable service or more, his pensionable service shall be increased by adding a weightage of 2 years....

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Amendment in rule for Disbursement of pension and other benefits

G.S.R. 437(E) - (04/05/2017) - Disbursement of pension and other benefits.- (1) The Commissioner shall, with the approval of the Central Board, enter into arrangement for the disbursement of pension and other benefits under this Scheme with disbursing agencies like post office or nationalised banks or Treasuries or scheduled comm...

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Recent Posts in "pension scheme"

Tax Treatment of Income from Salary in Brief

Salary is defined to include: a) Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance in Recognized Provident Fund j) Contribution by Cent...

Read More
Posted Under: Income Tax |

Section 80CCD Deduction to National Pension System subscribers

(i) Under the existing provisions of section 10 of the Act, any payment from the NPS Trust to an assessee on closure of his account or on his opting out of the pension scheme, to the extent it does not exceed forty per cent of the total amount payable to him at the time of […]...

Read More
Posted Under: Income Tax |

Response of Armed Forces on issue of taxability of disability pension

1. Some veterans have highlighted the case of Maj Gen Ian Cardozo (Retired) to express resentment against the recent directive to not allow tax exemption for disability pension. 2. Disability is granted to personnel who are disabled in combat or, during peace time and their disability is attributable to service conditions. The latter have...

Read More
Posted Under: Income Tax |

Disability pension exempt for armed forces personnel of all ranks-CBDT

Circular No. 13/2019-Income Tax (24/06/2019)

Exemption of service element and disability element of disability  pension granted to disabled personnel of armed forces who have been invalided on account of disability attributable to or aggravated by such service. CIRCULAR No. 13/2019 F. No. 173/250/2019-ITA-1 Government of India Ministry of Finance Department  of  Revenue Central B...

Read More

FAQ on National Pension Scheme (NPS)

What is National Pension Scheme (NPS)? National Pension Scheme (NPS) was initially launched in January 2004 for government employees but then in 2009, it was made available to every citizen of India whether resident or non-resident aged between 18-60 years. NPS allows you to contribute regularly in a pension account during their working l...

Read More
Posted Under: Income Tax |

Higher Pension as per SC decision with Calculation & Examples

Employees’ Pension Scheme (EPS-95) offers pension on retirement, disablement, pension to widow and pension for nominees. This article explains how much EPS Pension you will get if you retire at the age of 58 years. Recently on 1st April 2019 Supreme Court has given the decision that the pension to be paid on actual salary rather than ...

Read More
Posted Under: Income Tax |

Either INVEST or Pay TAX!

There are many options in the market where a person can invest and save his/her tax. But before investing anywhere, all the factors must be kept in mind like return on investment, risk involved, lock-in period, minimum and maximum amount that can be invested and many more....

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Posted Under: Income Tax |

Wrong Method of EPFO to Calculate Pension Under EPS 1995

Section 12(3)(b) – Past service pension for FPF1971 membership depends on salary and no. of years under FPF 1971 with minimum of Rs.80/- for 11 years or less on salary of Rs.2500 or less and maximum of Rs.170/- for 20 years or more for FPF1971 membership on salary of more than Rs.2500/-...

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Posted Under: Income Tax |

NPS Scheme Looking Attractive Now

A subscriber under NPS is entitled to get additional tax benefit up to Rs. 50,000 in a financial year under section 80CCD (IB) of Income Tax Act. This is over and above the deduction of Rs. 1,50,000 available under section 80C /80CCE of Income Tax Act ....

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Posted Under: Income Tax |

NPS Withdrawal: Norms, Purpose, Limits and Frequency

NPS Withdrawal Norms The Pension Fund Regulatory and Development Authority (PFRDA) has changed the norms for withdrawal of National Pension System (NPS) subscribers. Keeping in view the possibility of sudden financial needs of the subscribers, the requirement of minimum period under National Pension System (NPS) for availing the facility ...

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Posted Under: Income Tax |

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