Income Tax Income Tax is a tax that is supposed to be paid by every business and every individual by law. These individuals or businesses are those that earn an income which is a significant amount on per annum basis with any services that they provide, savings account, products, pensions that they receive, businesses that they deal in, etc. in the country of India. The income taxes that people pay have to be shown on a income tax return sheet in order to process the returns and show how much taxes have been paid. This process should be done and dusted within the prescribed deadline. After that date, no filings for the taxes will be accepted for the purpose of tax returns. Even n on - resident Indians (NRIs) have to pay taxes in the country as per law but it will only be for the income or salaries that they have generated or received with services they worked for in India and not in the country that they are a resident of. What are Income Tax Returns - ITRs? The Income
What is a NPS Account? NPS stands for National Pension System. It was formed in the year 1999 by the Government of India to help people save money in a systematic way to use after their retirement. It is a voluntary entity which is defined contribution retirement savings scheme. It works in order to protect the volunteers that subscribed to the scheme/system by giving them higher returns and higher interest. Types of National Pension Scheme funds There are 3 types of NPS funds out of which the volunteer subscriber can choose from; they are as follows: ➢ Government securities ➢ Equities ➢ Corporate funds Why is it good to invest into National Pension Scheme? • Unbelievable Tax Exemptions Under the national pension system, the subscriber is subject to a lot of tax benefits and tax deduction through the sections in the Income Tax Act in India. Here are the 3 sections under which tax benefits in NPS become possible: Section 80 C C D -