You can claim benefit of arrear of salary if same is received for earlier years u/s 89 and save some tax.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Income tax on additional nps deduction
My query is in form an example-- my annual salary basic pay plus DA =1,00,000/- pm,.. nps govt contribution @ 14%=14000 pm and mine contribution is 10,000 pm. As only 10% of govt contribution is tax exempted for state employees Rs 4000 is taxable per month will be added in salary rest will be exempted under sec 80ccd(2). But her is a situation this financial year Rs 10000 pm extra is being deducted from salary and rs 10000 pm is contributed by govt as arrears of previous yrs (year 2015-2017) when NPS was not deducted in that period .10% of salary (basic pay +DA) is contributed by govt and me for NPS What will the tax liability of this 10% govt contribution for previous ( 2015-2017) .this year govt will contributing rs 10000 pm for NPS for previous year (2015-2017).
Asked 4 years ago in Income Tax
what will be the tax liability on this additional rs 10000 pm nps govt contribution ...which is over and above regualr nps deduction..
Asked 4 years ago
Additional nps contribution (i.e. arrears) over and above 14% of basic salary by the employer shall ne taxable.
Dear Sir,
Hope you are doing well !!
Additional NPS contribution would be taxable as per your slab rate.
Hi
It will be taxable as per your slab rate.
Good morning mam,@karishma chhajer @payal chhajed since my additional govt contribution is for previous years should it not be exempted under sec 89?
Asked 4 years ago
Even if it is related to previous years, it would be taxable.
You can get some releif u/s 89 but it will be taxable.
Dear Sir,
For better understanding ,please with us your Form 16 for the relevant Year, so as to provide better consultancy.
Thanks and Regards
Shiv Kumar Agarwal
Hi
According to Section 89, if you get salary in arrears or advance in a financial year due to which your total income for the year increases, which in turn increases your taxable income, you can claim for relief under Section 89. You can get some relief but it still it is taxable.
Hi
For detail discussion please have a phone consultation.
You need to check whether there is any relief.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA