Income Tax Department has changed its format, now you can avail tax deduction on Agniveer Seva Nidhi Fund

Agniveer Salary: The Income Tax Department has made important changes in ITR Form-1, which will directly affect Agniveer. A new section Section CCH has been included in the form, through which Agniveers can avail tax deduction on their service fund. According to the department, this section allows individuals to avail tax deduction who enroll in the Agneepath scheme and deposit the amount in the Agniveer Fund on or after November 1, 2022. To accommodate this change, ITR Form 1 has been updated to allow the taxpayer to provide details of the amount eligible for deduction under Section 80CCH.

There will be benefits in both tax systems

Deduction under section 80CCH will be allowed in both the new and old tax regimes. This permission will be given under section 115BAC. Agniveers can avail tax deduction under section 80CCH while filing income tax returns for FY 2023-24 and subsequent financial years.

No tax on service fund

On completion of four years of service, Agniveer will get an amount of about Rs 10.04 lakh deposited in the scheme along with interest. By adding a new section in Section 10 of the Income Tax Act, the amount received from the corpus fund was given relief from income tax. Its purpose is that under the Agniveer Scheme-2022, the nominee or his nominee will get income tax exemption on the amount received from the Agniveer Seva Nidhi Fund. This gives the Agniveer Seva Nidhi Fund the status of Exempt-Exempt-Exempt (EEE).