The Sukanya Samriddhi Account (SSA), a government-backed savings scheme launched in 2015, offers an 8.2% annual interest rate. Parents can invest up to Rs 1.5 lakh annually for 15 years, building a tax-exempt corpus for a girl child's education and marriage, maturing in 21 years.
The 'Nature of Employment' field in Income Tax Returns (ITR) is critical for taxpayers. An incorrect selection can impact tax benefits like gratuity, commuted pension, and leave encashment exemptions, as well as NPS deductions, leading to compliance issues.
Experts clarify that only the actual financial contributor to a jointly owned property can claim long-term capital gains tax benefits. For a flat allotted before July 23, 2024, taxpayers can choose between 20% with indexation or 12.5% without indexation, and Section 54 allows for tax exemption if reinvested in another property.
Self-employed individuals and salaried employees not receiving House Rent Allowance (HRA) can claim tax benefits for rent paid under Section 80GG of the Income Tax Act. This deduction, capped at Rs 60,000 annually, is available only under the old tax regime and requires filing Form 10BA. HRA exemption and Section 80GG are mutually exclusive.
Self-employed and salaried individuals not receiving House Rent Allowance (HRA) can claim tax benefits up to Rs 60,000 annually under Section 80GG of the Income Tax Act, provided they file Form 10BA and adhere to specific conditions. This deduction is exclusive to the old tax regime and cannot be claimed alongside HRA exemption.
India's NPS sees rising private sector participation, though government contributions still dominate. HDFC Pension CEO Sriram Iyer highlights NPS's tax benefits under the new regime, its potential for higher returns than EPF due to equity exposure, and the need for market-linked annuity products.
Salaried employees can claim meal card tax benefits under both old and new tax regimes from Tax Year 2026-27 onwards. For AY 2026-27, the benefit is restricted to the old tax regime with a Rs 50 per meal limit, while Tax Year 2026-27 allows Rs 200 per meal under both regimes. Proper ITR reporting and documentation are essential for claiming these exemptions.
