Hi all
I am here to ask something about exemption under new tax regime.
My client is a government employee. He is a police personnel and he received transport allowance of 65232, Ration money (non civil) 51198, TA(arrear) 7500, Ration money allowance 8992, Tution fees reimbursement 229502.
How much exemption under new regime
Under the new tax regime: Standard Deduction is Rs.50,000/-
No exemptions are available for specific allowances like transport allowance, ration money, etc., unless they are specifically exempted by the govt.
The total taxable income from these allowances would be Rs.3,62,424.
After applying the standard deduction of Rs.50,000, the net taxable income from these allowances would be Rs.3,12,424.
CAclubindia
