Donations to the Ayodhya Ram Mandir may qualify for income tax deduction. This is under the old I-T regime. Individuals using the old tax regime can claim up to 50% deduction under Section 80G. This applies when donating to the Shri Ram Janmabhoomi Teerth Kshetra. Cash contributions cannot exceed ₹2000. Donations in kind are not eligible for tax exemption.

Eligibility For Donating Based on Trust Website

The Trust website details eligibility. 50% of voluntary contributions are eligible for deduction. This is under Section 80G of the Income Tax Act. This applies only to funds for renovation or repair of the Mandir. Donations for other activities do not qualify. This includes religious events or social welfare initiatives.

Section 80G Provisions

The grand temple was recognised in 2020. It is a historically significant public place of worship. This makes it eligible for deductions under Section 80G (2) sub-clause 9 (b). The Income Tax Act specifies contributions for renovation or repairs. These are notified temples and are eligible for a 50% deduction. This is the net qualifying amount.

Limits on Deductible Amount

The qualifying limit is capped at 10% of the donor’s Adjusted Gross Total Income. Gross total income is calculated after subtracting deductions. This includes Sections 80C to 80U, excluding 80G. It also excludes income subject to capital gains from the GTI.

Mode of Payment Restriction

Section 80G mandates a restriction on the mode of payment. No deduction is allowed for sums exceeding ₹2,000. This applies unless the sum is paid by modes other than cash. This means donations via UPI, cheque, demand draft, NEFT, IMPS are allowed. Cash donations exceeding ₹2,000 are not eligible for deduction.

Conclusion

Donations to the Ayodhya Ram Mandir may offer tax benefits. This is under the old tax regime and Section 80G. Specific conditions apply to eligibility and mode of payment. Understanding these rules is crucial for claiming deductions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

A job offer boasting a ₹10 lakh annual salary will certainly take you over the moon. However, it’s still vital to understand how much of that translates into your actual monthly paycheck. To plan your finances effectively, let’s break down the different parts of your salary and estimate what you’ll be taking home each month.

Understand Your Salary Structure

Your total compensation package is known as CTC (Cost to Company). It is made up of various elements. These can include your base pay, HRA (for accommodation), gratuity, special allowance, medical allowance, insurance coverage, bonuses, and contributions towards your Provident Fund (PF), among other things.

However, the entire CTC amount doesn’t land in your bank account each month. Several deductions, such as contributions to your EPF (Employees’ Provident Fund), professional taxes, and income taxes, will be subtracted from this total.

Figuring Out Your Actual Paycheck

To understand what you’ll actually receive each month, follow these straightforward steps to calculate your take-home, also known as in-hand or net salary.

Step 1: Calculate Your Gross Salary

Gross Salary = CTC (Cost to Company) – (Your EPF Contribution + Gratuity Amount)

Step 2: Determine Your Taxable Income

Taxable Income = Gross Salary + Income from Other Sources – Deductions

To arrive at your taxable income, subtract various allowances (like HRA, LTA, and conveyance), professional tax, medical expenses, insurance premiums, and your tax-saving investments from your gross salary. This will give you your basic monthly salary.

Understanding Income for Tax 

When calculating income tax, remember to include earnings from all sources, such as:

• Your regular salary from your employer
• Profits from selling shares or property (capital gains)
• Income from any house property you own (like rent or interest paid on a home loan)
• Income from your own business or profession
• Other income sources (like interest from savings accounts, fixed deposits, or bonds)

Common Deductions

• House Rent Allowance (HRA): You can significantly reduce your taxable income based on your rent and where you live. The exempt amount is the lowest of: the HRA you received, the rent you paid minus 10% of your basic salary, or 50% of your basic salary if you reside in a metro city (like Delhi, Mumbai, Chennai, or Kolkata), but only 40% if you live in a non-metro city. This difference reflects the higher cost of living and rental expenses typically found in major metropolitan areas, directly impacting your potential savings.

• Standard Deduction: A fixed deduction of ₹50,000 is available each year. This replaces the previous transport and medical allowances.

• Leave Travel Allowance (LTA):You can claim LTA for domestic travel twice within 4 years, as long as you provide valid bills.

• Other Salary Components:Certain parts of your salary, like medical reimbursements and telephone bill reimbursements, might also be exempt from tax.

Final Monthly In-Hand Salary Calculation

Below is a structured salary breakdown based on the estimated calculations.

Keep in mind that this salary breakdown is a general illustration. Your actual take-home pay will differ due to company-specific policies and deductions for things like income tax. Furthermore, your choice between the new tax regime (with potentially lower rates but fewer exemptions) and the old tax regime (with potentially higher rates but more available deductions) will significantly affect your final paycheck.

Conclusion

While a 10 LPA CTC initially seems substantial, after accounting for deductions, the estimated monthly in-hand salary is around ₹74,233. However, it’s crucial to remember that individual factors and company rules can greatly influence this amount. For a precise understanding of your salary structure and deductions, always consult with a financial advisor and carefully examine your offer letter.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Online payment has been the mandatory method for EPF contributions by all registered employers since September 2015. Employers can use the EPF’s official portal or their bank’s website if the bank offers this facility.

Benefits of Making EPF Contributions

Contributing to the Employees’ Provident Fund (EPF) offers several key benefits. Firstly, it provides tax advantages, with both employee contributions and the interest earned being tax-free under specific conditions. Furthermore, even inactive accounts continue to accrue interest.

Secondly, the EPF ensures a lifelong assured pension under the Employees’ Pension Scheme (EPS) after 10 years of contributory membership, offering financial security post-retirement.

Beyond retirement benefits, the EPF also provides insurance coverage through the EDLI scheme, offering a lump-sum payout to the nominee in case of the employee’s death during service. While long-term stability is encouraged, the scheme also allows for premature partial withdrawals for specific needs after a stipulated period of service.

Finally, the EPF offers relatively high returns through a diversified investment portfolio, though slightly lower than the NPS, and ensures that the accrued balance is transferred to the nominee upon the employee’s demise.

Which Banks Offer Digital Payment Facilities for PF Contribution?

How to Make Digital EPF Payment?

1. Log in to the EPFO portal using your ECR credentials.
2. Verify your establishment details.
3. Go to ‘Payment’ and select ‘ECR Upload’.
4. Prepare and upload your ECR text file.
5. Wait for file validation.
6. Note the TRRN generated upon successful validation.
7. Verify the TRRN and prepare the challan.
8. Enter admin charges and finalize the challan.
9. Click ‘Pay’ against the TRRN.
10. Choose ‘online’ payment mode and your bank.
11. Complete payment on the bank’s website.
12. Receive transaction ID and confirmation on the EPFO page.

*ECR stands for Electronic Challan cum Return. It includes details like salary disbursal rate, rate of contribution, and wage month.

*TRRN stands for Temporary Return Reference Number (TRRN).

Conclusion

Online EPF payments have been made compulsory since 2015. They offer substantial convenience and can be done through numerous listed banks or the EPFO portal. This ensures timely PF contributions for employees while offering them insurance coverage, tax benefits, and pension security simultaneously.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

The Unified Pension Scheme (UPS) begins April 1, 2025. It is a part of the National Pension System (NPS). It provides guaranteed pension benefits. It also includes government contributions. It ensures financial security post-retirement and provides investment flexibility.

Get Guaranteed Pension Based on Service Under The UPS

UPS provides structured pension payouts based on service years. Those with over 25 years of service receive 50% of their last 12 months’ average basic salary. Similarly, employees with nearly 10-25 years get proportionate amounts of pensions. Longer service yields typically higher payouts.

UPS is designed to provide more predictability than NPS. It will provide a guaranteed pension of at least ₹10,000 per month for individuals who have spent 10+ years in service. UPS ensures financial stability after retirement.

Government Contributions and Investment Options

Under the UPS, employees contribute nearly 10% of their basic salary plus DA. The government will match this contribution with a similar amount. Total investment is nearly 20%. These contributions are invested in government-prescribed schemes.

Employees have the freedom to choose private pension fund managers (PFMs) who offer a variety of investment choices. Employees can select one of the options aligning with their financial goals. An additional 8.5% contribution is invested in a common pool. Fund managers manage this pool based on performance.

Inflation Protection and Spousal Benefits

UPS is directly linked to DA to maintain purchasing power post-retirement. Pension payouts increase gradually to accommodate for inflation. This ensures that pensioners maintain thei living standards. Spouses are also entitled to receive 60% of the total pension amount. This offers considerable stability to retirees’ families.

Pension Withdrawals and State Adoption

Just like a systematic withdrawal plan (SWP), pension can be withdrawn from the accumulated corpus post-retirement. If the corpus depletes, pension payments continue from a government pool. Thus, retirees always receive regular payouts. The remaining funds stay invested.

Challenges and Employee Actions

Annuity service providers (ASPs) are excluded. The 8.5% common pool investment strategy is pending. The government will provide more details. Eligible employees enrol via the Protean CRA portal. They can also submit physical forms.

Conclusion

UPS seeks to provide secure pension payments to central government employees. It will offer inflation protection and guaranteed benefits. State-level adoption will vary. Employees should prepare for enrollment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.