Taxation under the head Salaries
This query is : Resolved
22 June 2025
My father is under PSU sector. His annual Income is 36 Lakhs for PY 2024-25. He is having below perquisites:
Free Meal 48,955
Interest free loan 2,544
Income tax on monetary & non-monetary perquisites 17,619
Tax paid by employer on behalf of employee u/s 192(1A) 23,116.
Can he claim exemption on these above items u/s 10?
Free Meal 48,955
Interest free loan 2,544
Income tax on monetary & non-monetary perquisites 17,619
Tax paid by employer on behalf of employee u/s 192(1A) 23,116.
Can he claim exemption on these above items u/s 10?
23 June 2025
Free Meal: Will be taxable if your father opts for the New Tax Regime. Under the Old Tax Regime, an exemption of ₹ 50 per meal is available.
Interest-free loan: Likely exempt if the total outstanding loan amount (not just the perquisite value) for the year is less than ₹ 20,000, or if it's for specified medical treatment. Since the perquisite value is ₹ 2,544, the actual loan amount might be higher, so this needs clarification. If the actual loan amount is small and within the limit, then the perquisite value on it is exempt.
Income tax on monetary & non-monetary perquisites & Tax paid by employer u/s 192(1A): These amounts are likely to be exempt under Section 10(10CC), provided they represent tax paid by the employer on non-monetary perquisites.
The employer will issue Form 16, which will clearly show how these perquisites are valued and whether any tax has been deducted on them. It will also indicate the chosen tax regime.
Interest-free loan: Likely exempt if the total outstanding loan amount (not just the perquisite value) for the year is less than ₹ 20,000, or if it's for specified medical treatment. Since the perquisite value is ₹ 2,544, the actual loan amount might be higher, so this needs clarification. If the actual loan amount is small and within the limit, then the perquisite value on it is exempt.
Income tax on monetary & non-monetary perquisites & Tax paid by employer u/s 192(1A): These amounts are likely to be exempt under Section 10(10CC), provided they represent tax paid by the employer on non-monetary perquisites.
The employer will issue Form 16, which will clearly show how these perquisites are valued and whether any tax has been deducted on them. It will also indicate the chosen tax regime.
23 June 2025
Sir,
My father's IT has been calculated under new tax regime. But there is no break up of Basic DA HRA, hence I can't even claim for HRA exemption
My father's IT has been calculated under new tax regime. But there is no break up of Basic DA HRA, hence I can't even claim for HRA exemption
23 June 2025
HRA exemption is NOT allowed under the new tax regime.
Under new tax regime Tax liability is calculated over gross salary including DA & HRA.
Under new tax regime Tax liability is calculated over gross salary including DA & HRA.
23 June 2025
Thank you so much Sir
23 June 2025
You are welcome.
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