Employment Income in The DTC, 2010
· Exempt Exempt Exempt ("EEE") method of taxation restored for
· Provident Fund under Provident Funds Act, 1925
· Any other provident fund set up by the Central Government and notified in this behalf
· Approved Superannuation Fund
· Payment of life insurance premium, health insurance premium, tuition fees qualify for deduction to the
extent of Rs. 50,000.
· Deduction for contribution to approved funds to the extent of Rs 100,000.
· Medical reimbursement exemption limit increased from Rs 15,000 to Rs 50,000.
· The scope of taxation has been widened for the policyholders. The amount received from the life
insurance policy would be subject to tax as ‘Income from Residuary Sources’ unless:
- distribution tax of 5% has been paid by the insurance company; or
- it is received on maturity; and
- received on maturity subject to satisfaction of certain conditions such as premium paid for any of
the years not exceeding 5% of the capital sum assured.
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