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Discussion > Income Tax > Tax planning >

EXEMPTION DEDUCTIONS FROM SALARY

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ENTERPRENEUR


[ Scorecard : 571]
Posted On 09 March 2011 at 15:00 Report Abuse

EXEMPTIONS/DEDUCTIONS FROM SALARY

1.  VOLUNTARY RETIREMENT – 10(10C)

Amount received or receivable (ie.,in instalments) by an employee on his voluntary retirement in accordance with any scheme of Voluntary Retirement is exempt to the extent of Rs.5,00,000, provided the VRS is in accordance with Rule 2BA of IT Rules. However no 89(1) relief can be claimed.

2.  HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A) – Read with Rule 2A of IT Rules 1962

a)   Actual HRA received                                :  Rs.xxxx
b)   Rent paid in excess of 10% of Salary      :  Rs.xxxx
c)   50% of Salary in Metro Cities or
      40% of Salary in other cities                   :  Rs.xxxx
      Least of a), b), c) is exempt.

 NOTE: Here Salary means Basic Salary as well as DA if the terms of employment so provide.

3.  CONVEYANCE ALLOWANCE: 

Any allowance granted to meet the expenditure incurred wholly, necessarily and exclusively on conveyance in performance of the duties of office and so certified by the employer is exempt u/s.10(14).

4.  TRANSPORT ALLOWANCE:

Any allowance granted to an employee to meet the expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent upto Rs.800/- per month is exempt u/s.10(14).

5.   MEDICAL REIMBURSEMENT:

An amount of Rs.15,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2).

6.   PROFESSION TAX :

Profession Tax levied by the State Government is allowable as a deduction from Gross Salary provided it has been paid.



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Anju
Sr. HR executive


[ Scorecard : 21]
Posted On 09 January 2012 at 16:11

Hi,

 

Just want to know about the latest Tax exemption details for the following Salary component,

 

Field Expense Reimbursement [2FER]
Medical Reimbursement [1MED]
Meal Coupons [1SDX]
Driver Salary Reimbursement [2DSR]
Telephone Reimbursement [2TER]
Attire Reimbursement [2ATR]
Entertainment Expense Reimbursement [2EER]
Books & Periodicals Reimbursement [2MGR]
City Compensatory Allowance [1CCA]
Leave Travel Allowance [1LTA]

 





AK
AK


[ Scorecard : 37]
Posted On 09 January 2012 at 16:48

I have a query regarding PPF deposits. I have been receiving confliciting response on this subject, request if someone can bring clarity on this.

My query is if I have a PPF account in my name as well as PPF account in the name of my minor son, which of the following statement will be correct?

1) I cannot deposit more than Rs. 1 lakh in one FY in both the PPF accounts taking together under any circumtances. OR

2) I can deposit Rs. 1 Lakh each in my account as well as my minor son's account (total 2 lakhs) but I wil get the 80C benefit for only Rs. 1 Lakh. Investment of Rs. 1 lakh in Minor son's account will be more of a non-taxable and non tax deductible investment to accumlate a kitty till he becomes major.

If statement at 2 above is correct, then will the interest income on additional 1 lakh deposited in PPF will still be tax free or will it require to be shown as 'income from other sources' since it is a non-qualifying investment.

 

Thanks in advance for your responses.




SUBRAMANYAM GIRISHA
PROPRIETOR


[ Scorecard : 22]
Posted On 26 February 2012 at 20:03

MEDICAL REIMBURSEMENT OF Rs.15000.00 WITHOUT ANY BILLS CANBE CLAIMED.

IN A FINANCIAL YEAR.

 

PLEASE LET ME KNOW




Amit singh
article assistant


[ Scorecard : 24]
Posted On 17 July 2012 at 13:31

helloo friends I have a Query 

shall we take deductions OF Medical Allowance and  Conveyance allowance, and Transport Allowance if my  Employer give Me 300000 in cheque showing it as Gross Salary and deduct Tds on it so to claim my tax back shall i deduct thes allowances As they are allowed ..




VIJAY CHAWLA
MANAGER ACCOUNTS


[ Scorecard : 21]
Posted On 23 October 2012 at 15:44

SIR , I AM WORKING IN SCHOOL WHEN I RESIGN FROM MY JOB THEN I PAID 3 MONTH SALARY TO MY EMPLOYER ON A/C OF NOTICE , WHEN I FILE MY INCOME TAX RETURN THEN I HAD ADJUST THI S AMOUNT FROM MY TOTAL INCOME 

IF YES THEN PLS TELL ME UNDER WHICH SECTION & HOW

 

 



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