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
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