Agniveer Corpus Fund has been created to provide financial package to Agniveers.
A new section 80CCH has been included in the Income Tax Act to give tax exemption to firefighters.
Under 80CCH, deduction will be allowed in both New Tax Regime and Old Tax Regime.
New Delhi. Last year, the central government had started the Agneepath scheme for recruitment in the armed forces. Under this scheme, Agniveer Corpus Fund has been created to provide financial package to Agniveers. Which is managed by the Ministry of Defense. In this budget, the government has included a new section 80CCH in the Income Tax Act to give tax exemption on the contribution of Agniveer and the Central Government to the Agniveer Corpus Fund.
Let us tell you that under the Agneepath scheme, Agniveers are recruited in the army for four years. Under this scheme, Agniveers are given a composite annual package of Rs 4.76 lakh. At the same time, in the last year of service, this package increases to about Rs 6.92 lakh. Apart from this, allowances like risk and hardship, ration, dress and travel are also given to Agniveers.
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Contribution to Agniveer Corpus Fund is necessary
Under this scheme, the Agniveers who join the army have to contribute 30% of their monthly salary to the Agniveer Corpus Fund account. At the same time, the same amount is also contributed by the Central Government in this fund. In this, the contribution of the government is considered as the income of the Agniveers. Means the Agniveers have to pay tax on this. Whereas in the beginning of the scheme, there was a proposal to give tax exemption on contribution to Agniveer Corpus Fund. Apart from this, there was also a proposal to give tax exemption in the financial package received in the last year of service.
New section included in the Income Tax Act in the budget
In this Union Budget, a new section 80CCH has been included in the Income Tax Act to provide tax exemption benefits to firefighters. Under this section, a provision has been made to give tax exemption on the contribution of Agniveer and the Central Government to the Agniveer Corpus Fund after 1 November 2022. According to this section, tax deduction can be claimed while filing income tax return on the contribution of Agniveer and the Central Government. Apart from this, it is also proposed that under section 80CCH, deduction will be allowed in both New Tax Regime and Old Tax Regime.
Tax will not have to be paid on the money of Agniveer Corpus Fund
On completion of 4 years of service under Agneepath scheme, Agniveers will be given Rs 10.04 lakh deposited in Agniveer Corpus Fund along with interest on it. In the Finance Bill, it has been proposed to include a new clause (12C) in section 10 of the Income Tax Act. Through this, Agniveer or his nominee will get income tax exemption on the money received from Agniveer Corpus Fund. This gives Agniveer Corpus Fund the status of Exempt-Exempt-Exempt (EEE).
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Tags: Agnipath scheme, Agniveer, business news, business news in hindi, income tax, income tax exemption, income tax latest news
FIRST PUBLISHED : February 06, 2023, 23:49 IST