Agniveer Indian Army: Agniveer will get the amount and interest of about Rs 10.04 lakh deposited in the scheme. 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.
Agniveer Salary: Income Tax Department has made important changes in ITR Form-1, which will have a direct impact on Agniveer. A new section Section CCH has been included in the form, through which Agniveer can avail tax deduction on his service fund corpus. According to the department, this section allows individuals who enroll in the Agnipath scheme and deposit the amount in the Agniveer Fund on or after November 1, 2022, to avail tax deductions. To accommodate this change, ITR Form 1 has been updated to allow the taxpayer to provide description 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 under section 115BAC. Agniveer 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 funds
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 the person enrolled under Agniveer Yojana-2022 or his nominee will get income tax exemption on the amount received from Agniveer Seva Nidhi Fund. This gives the Agniveer Seva Nidhi Fund the exempted-exempt-exempt (EEE) status.
