Consolidated Salary, Stipend and Leave encashment Querry

Hi

I have recently started work as a consultant Senior Program Officer with a NGO and earn Rs 80,000 / mth consolidated inclusive of Rs 24000 HRA and 800 TA. My daily work involves lot of driving (excess of rs 6000/mth expense on petrol and 4500/mth driver) and communications. These expenses are not reimbursed to me. I pay rs 15,000 /mth as rent.

I have also accumulated savings of  Rs.103500 in various savings scemes such as LIC/NSC/PPF etc.

Can I show these as expenses against my income and claim rebate on the same? What are the expenses that i can show against my income and save tax.

Anotehr querry regarding

  • Rs 120,000 I had received as stipend from a European university ? Is that taxable?
  • Rs 75,000 received as Leave encashment from central governement at time of completeion of residency. Is that taxable? Is that taxable?

I havent been able to find much information on internet on these topic

Thanks

V

Replies (2)

Dear Vivek,

In case of salary the only deductions allowable are for Professional; Tax and Entertainment Allowance, the later being applicable only to Govt Employees.. You can claim exemption of Rs 800 of your TA, as it is exempt income u/s 10(14). HRA is also exempt to the extent allowed by sec 10(13A) (please check the provisions on the net itself..nothing complicated)..

 

.The savings you have mentioned would enable you to claim deduction of up to a maximum of Rs 1 Lac u/s 80C if ur investments in them has been made during the Previous year itself.

 

Stipend is not salary. It should be taxable as Other sources of Income.

The leave salary is exempted from tax if encashed at the time of leaving the job. This part is not so clear to me.. u shoult take second opinion.

Thanks Amit for your response. I read in another thread that since Stipend is not an employee-emploter relationship, it does not attaract tax.

I guess since mine is a confusing case with three separate income sources in an year, I better seek professional (aka CA) help :P

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