Tax Saving Investments You Need to Know About!

Through a notification on June 30, the CBDT has provided an extension in the time-limits for a further period of one month till July 31, 2020, for the assesses who have made investments under-saving schemes and intend to claim deductions under the provisions of the Income Tax Act 1961 including the deductions allowed under sections-Section 80C( Insurance Premium, PPF, National Saving Certificate),80D(Medical Claim), 80G( for making Donations), etc. that also includes investments made under the NPS (National Pension Scheme).

Further, the following are the key updates you should know about-

1.    Tax saving investment date for FY 2019-20 has been extended up to July 31, 2020; invest rupees fifty thousand in NPS for additional tax benefits the pension fund regulator;

2.    The contribution towards the NPS tier 1 account allows claiming an exclusive deduction of up to fifty thousand under section 80CCD(1B). The benefit could be continued to be claimed if the new scheme is no availed and the old scheme is continued to be followed under the Act.

3.    This additional deduction of rupees fifty thousand shall be in addition to the allowed amount of 1.5 lakh allowed under section 80CCD (1) for investment towards NPS.

4.    The total amount of deductions under section 80C, 80CCC investment in pension plan offered by the insurer.

5.    Section 80CCD for the saving schemes, cannot exceed rupees 1.5 lakh regimes, however, will continue under the old tax regime.

6.    Under the new tax rates that came effect from April 1, the tax regime is as follows-

7.     The pension fund regulator earlier this week also introduced the facility of OTP based onboarding facility for the National Pension Scheme.

8.    Further, in its endeavor to provide digital solutions, the Pension Fund Regulatory and Development Authority (PFRDA) has already enabled opening online NPS account in a paperless manner through e-signature.

9.    The subscribers are permitted to open their NPS account through the OTP also, PFRDA to facilitate ease of NPS account opening.

Author:

eStartIndia Team