Exemption available u/s 10 to salaried employee is summarised below for ready recokner.
|Section||Income||Maximum Exempt Amount||Conditions|
- 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.
Source: Web / Internal