Income tax 2018-19

First thing is as per sec 1 this act applicable to allover India including j&k so it doesn't makes any difference in state of Meghalaya(except other proviso of the act).

Basic salary - fully taxable

DA - fully taxable

Travelling allowance - fully taxable

High attitude allowance - full taxable

Special duty allowance - fully taxable

Children education allowance - exempt 100rs per month upto 2 children (means max 2400 p.a.)

NPS (employer contribution) - fully taxable in salary and deduction allows u/s 80ccd(2) 10% of salary
Here salary for NPS means (basic + DA terms of benefit)

NPS(employees contribution) - not taxed in salary even deduction available u/s 80ccd(1) max 10% of salary (salary meaning is same as per above)

One more limit for 80ccd(1) max allows upto 50000 in 80ccd(1b) rest will allow with 80c

And as per 80cce you can get max benefit upto 150000 as aggregate of 80c+80ccc

Its little bit difficult to understand but in simple way

80ccd(2) employer contri. =upto full extent
80ccd(1b)employee contri. = upto 50000
80ccd(1)rest employee contribution & 80cce = max 150000

I would like to correct @ mayur.. High altitude allowance is exempt from tax upto ₹ 1060/month (for altitude of 9000 to 15000ft)or ₹ 1600/month (for altitude above 15000 ft)

Travelling allowance - exempt u/s 10(14)(ii) upto 1600/- per month (Rs. 19,200/- per year). Any amount received above this would be taxable.

However, from FY 2018-19, standard deduction of Rs 40,000 has been introduced in lieu of transport allowance and medical reimbursements jointly.

High altitude Allowance - exempt as per the Altitude. ( @ Divyani I think the limit mentioned by you have also been revised somewhere around 2700 pm -25000 pm don't know exaxt , but please check the same)

For NPS-

See, Main Section 80CCD is divided into 3 parts;

80CCD(1) - It is Employee/Self employed person's contribution which is already being paid from his salary/income. And because it has been paid from employee/self employed person pocket, Deduction is allowed normally.

[Clarification for @ Mayur - You said that not taxable in salary and even then it will be deductible u/s 80CCD(1). It can't be possible because in that case there would be double Deduction allowed. Therefore, it is first normally within the salary then if employee/self employed person paid toward the NPS then Deduction is allowed]

80CCD(1B) - It is nothing but JUST AN EXTENSION OF 80CCD(1) which means if the limit of 80CCD(1) has exhausted then excess amount contributed by Employee/Self employed person can claim his excess Deduction under this section.


BUT FOR THE PURPOSE OF 80CCE (i.e Limit of Rs. 1,50,000) ONLY SECTION 80C, 80CCC, 80CCD(1) SHALL BE TAKEN. [ NOT 80CCD(1B)]


80CCD(2) is Employer contribution towards NPS account of Employee. The Limit of Deductions would be same as Mr. Mayur Said.


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Thanks. Be Helpful to One Another!

thanks for valuable suggestions

You are always most Welcome.

Thanks for clear the doubt of 80ccd @ nitesh bind 😄

Yes @ Mayur your rest of answer was totally promising. Only on the points I mentioned was some issue. And I hope now that too have been sorted. Esp. 80CCD part.

And You are most welcome for any questions or any suggestions. 🙂

@ Mr Mayur Patil.,

Very nice work and explain. I appreciate You.
Keep it up Dear. God Bless You...


@ Nitesh Bind.,

Well Explain. Keep it up.

Wow., In single forum You got multiple likes with Just "Welcome" message...😇😇😇
Enjoy...👏👏👏👍👍👍

Thank you very much RAJA PM Sir. Your words are really very kind. I appreciate that. . 😊😊😄