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Summary of exemption u/s 10 to salaried employee

@VaibhavJ (Believe!! Live your dreams!)   (33496 Points)

21 December 2012  

Exemption available u/s 10 to salaried employee is summarised below for ready recokner.

Section Income Maximum Exempt Amount Conditions

10(10)

Gratuity.  Rs. 10,00,000  - Gratuity payable when employee has served minimum service of 4 years & 240 days.
- Amt payable = No. of years completed X Last drawn Basics X 15 /26
10(10AA) Leave encashment  Rs. 3,00,000  - Any amount paid while continuation of the service with the said organisation is fully taxable.
- Amt payable = Leave balance at the time of leaving organisation X avg. basic salary of last 10 months / 30 days
- Maximum leave allowable per year to be considered as 30 days while calculating leave balance on leaving organisation
10(10B)  Retrenchment Compensation Rs. 3,00,000 - Subject to maximum  : An amount calculated as per section 25F (b) of the Industrial Disputes Act, 1947; or actual amount.
- NA when received in accordance of Govt Scheme
10(10C) Compensation for voluntary retirement (V.R.S) Rs. 5,00,000 As per Rule 2BA of the Income Tax Rules.
10(10CC) Tax on non-monetary perquisites paid by the employer Actual amount paid NA
10(11) Payments received from a provident fund Actual amount paid See Section for more details
10(12) Accumulated balance in a recognized provident fund Actual amount paid See Section for more details
10(13A) House rent allowance Least of -
1. HRA actually paid
2. Rent paid Less 10% of Salary.
3. 50% of Salary if residing in Kolkata, Mumbai, Delhi or Chennai and 40% of Salary in other cases.
NA

Source: Web / Internal


 27 Replies

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 21 December 2012

bookmarked...!!!

2 Like

(Guest)

Nice Summary for exam........ Bookmarked....

thanxs 4 sharing................

 

1 Like

DEEPA VYAS (CA ) (2039 Points)
Replied 21 December 2012

GREAT WORK.............

1 Like

pallav (still a learner....) (938 Points)
Replied 21 December 2012

nice job...but what abt 10(14)??

1 Like

Ramesha.M (Accountant) (800 Points)
Replied 21 December 2012

Hello Brother

 

Good Work.Thanks for sharing

Best Regards

Ramesha.m

1 Like

JOHAN (CA-FINAL) (277 Points)
Replied 21 December 2012

Good Job!

Keep sharing...

1 Like

Hardik Dave (IPCC and CS Professional(FINAL) Student)   (15528 Points)
Replied 21 December 2012

Wonderful.smile. Thanku for sharing, keep sharing.
1 Like

CA rahul (BCOM(H) ACA) (725 Points)
Replied 22 December 2012

thanks for sharing

1 Like

Dhanya Sreedhar (CA final, doing Job) (661 Points)
Replied 22 December 2012

Good Job...yes

1 Like

venkata subbaiah (chartered accountant) (36 Points)
Replied 22 December 2012

great work 

2 Like

Ankur Agrawal (TRAINEE) (177 Points)
Replied 22 December 2012

nice interpretation as per

 

and good one.

 

 

Regards

Ankur Aggrawal

@VaibhavJ (Believe!! Live your dreams!)   (33496 Points)
Replied 22 December 2012

You all can read deduction under Ch-VI A, here.. feedback will be appreciated... thanks

hope this will like : /forum/deductions-under-chapter-via-of-income-tax-act-231661.asp

Vandana Mulchandani (Finance Manager ) (9227 Points)
Replied 22 December 2012

Good job Vaibhav...Well explained...Keep it up

@VaibhavJ (Believe!! Live your dreams!)   (33496 Points)
Replied 22 December 2012

Originally posted by : Ankur Agrawal

nice interpretation as per

and good one.
 
Regards

Ankur Aggrawal

Thanks Ankurji


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