Deduction in respect of contribution to Agnipath Scheme – Section 80CCH - Income Tax - Ready Reckoner - Income Tax

Deduction in respect of contribution to Agnipath Scheme Section 80CCH Who is eligible for the deduction: Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said Fund, he shall be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited. [Ex: - Assessee who opt for the scheme made by CG for employment in Indian Army] Contribution by CG: Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund referred to in section 80CCH(1), the assessee shall be allowed a deduction in the computation of his total income of the whole of the amount so contributed. In other words Nature of Exemption- Deduction under section 80CCH shall be provided for Contribution made by Individual Contribution made by Government This deduction shall be provided from the computation of Total Income of Agniveer. Note: For those individual who have opted for New Taxation regime under section 115BAC shall get a deduction of the government contribution to the Agnipath Scheme . ( sub section (2) of Section 80CCH ) Contribution made by the Central Government to the Agniveer Corpus Fund shall be considered as Salary of that individual. Section 10(12C) has been introduced to provide for exemption of any amount received by the Agniveer or his nominee from the Agniveer Corpus Fund ( i.e. Agniveer Corpus fund comprises of contribution of Agniveer + Interest AND Matching Contribution of Government + Interest) This section is applicable from F.Y. 2022-23 (A.Y. 2023-24) which we need to take care of while filing ITR of A.Y. 2023-24. Explanation. For the purposes of this section, (a) Agnipath Scheme means the scheme for enrolment in Indian Armed Forces introduced vide letter No.1(23)2022/D(Pay/Services), dated the 29th December, 2022 of the Government of India in the Ministry of Defence; (b) Agniveer Corpus Fund means a fund in which consolidated contributions of all the Agniveers and matching contributions of the Central Government along with interest on both these contributions are held.'.