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Agniveer Salary: The Income Tax Department has made important changes in ITR Form-1, which will directly benefit Agniveer. A new section Section CCH has been included in the form, through which Agniveer can avail tax deduction on his service fund. According to the department, this section gives the benefit of tax deduction to those individuals who enroll in the Agneepath scheme and deposit the amount in the Agniveer Fund on or after November 1, 2022. ITR Form 1 has been updated to accommodate this change, so that the taxpayer can provide details of the amount eligible for deduction under Section 80CCH.
There will be benefit in both tax systems
Deduction under Section 80CCH will be allowed in both the new and old tax regimes. This permission will be under Section 115BAC. One can avail tax deduction under Section 80CCH while filing income tax returns for the financial year 2023-24 and subsequent financial years.
There is no tax on service fund
On completion of four years of service, Agniveer will get about Rs 10.04 lakh deposited in the scheme and interest. By adding a new section in Section 10 of the Income Tax Act, the amount received from the corpus fund was exempted from income tax. Its purpose is that the person registered under Agniveer Yojana-2022 or his nominee will get income tax exemption on the amount received from the Agniveer Seva Nidhi fund. This Agniveer Seva Nidhi Fund gets the status of Exempt-Exempt-Exempt (EEE).
What is Agniveer Corpus Fund?
It is worth noting that on June 14, 2022, the Central Government had launched the Agneepath Recruitment Scheme to recruit a large number of youth in all three branches of the army, Army, Navy and Air Force. Under this, the youth have to work for four years. To provide financial security to Agniveer, Agniveer Corpus Fund has been created, and it is operated by the Ministry of Defense. In this, it is mandatory for the fire personnel to deposit 30 percent of their monthly income in this fund.
This amount including interest on maturity will be around Rs. 10.04 lakh
The central government also contributes the same amount. This amount including interest on maturity comes to around Rs 10.04 lakh. In this, the government contribution is considered as the income of the fireman, on which tax has to be paid. Initially, there was a proposal to give tax exemption on contribution to the 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. But then it was relaxed.