Perfectly ESI PF Consultant in Ahmedabad

Contract Payroll Outsourcing Companies in India by ESI PF Consultant in Ahmedabad. Account Tier II

The guidelines for NPS Tier II accounts for all investor groups are comparable to those for Tier I accounts for non-government subscribers in regard to asset class selection, percentage, and portfolio managers.

However, if a Central Government employee makes a contribution under the recently implemented NPS Tier II Tax Saver Scheme 2024, it must be invested in stocks to the tune of 10–25%, with the remaining half going to government and corporate bonds in an arbitrary ratio. Under Contributions & Tax Breaks, I have covered this tax exemption.

Payments and Tax Benefits

Contract Payroll Outsourcing Companies in India by ESI PF Consultant in Ahmedabad. At the time of registration, a subscriber must pay a minimum initial contribution of INR 500 for a Tier I account and INR 1000 for a Tier II account. For Tier I, the subsequent minimum payment is INR 500, with a minimum contribution of INR 1000 every fiscal year. The minimum contribution for a Tier II account is INR 250, and it is not required to make an annual payment.

Contributions from Government Sector Subscribers (salaried) and Non-Government Sector Subscribers (private sector workers and self-employed individuals) are outlined in Section 80C CD (1). The total of all these contributions is INR 1.5 lakh.

Section 80CCD (1B)

INR 50,000 extra deduction above and above Section 80CCD (1)

Section 80CCD(2) Regarding Employers' Contributions for Employees (both Government Sector Subscribers and Non-Government Sector Subscribers)

Non-Government paid personnel may claim tax exemption on their NPS contribution in Tier I Account up to 10% of their gross total income (or 10% of their Basic + Dearness Allowance), whichever is lower, under Section 80CCD(1). Government employees are subject to a cap of 14% of their gross total income or their Basic + Dearness Allowance, whichever is lower. Additionally, self-employed people are only allowed to keep 20% of their gross total revenue.

The annual maximum exemption for NPS Tier I contributions for all subscriber groups under section 80CCD(1) cannot be more than INR 1.5 lakh.

Numerous options, including PPF, Sukanya Samridhi, Employees Contribution towards Provident Fund, Voluntary Provident Fund, Equity Linked Savings Scheme, Tax Saver Fixed Deposit, and National Savings Certificate, have previously made use of the INR 1.5 lakh tax exemption. This head can even be used to claim the cost of kid tuition. This section also includes life insurance premiums.