Detail explanation of All Allowances, Perquisites and Retirement Benefits. It will help students as well as all salaried persons to understand maximum benefit available for salaried individual.
This document discusses various exemptions from income tax for salary income in India. It summarizes provisions related to leave salary, gratuity, pension, allowances, perquisites, provident fund and other deductions from salary that are exempt from tax. Key points include leave salary being fully tax exempt for government employees but with a maximum exemption of average salary for 10 months or Rs. 300,000 for non-govt employees. Gratuity is also exempt up to Rs. 10 lakhs. Certain allowances and perquisites like housing, medical benefits and interest-free loans are partially or fully tax exempt.
This document summarizes various types of non-taxable income under section 10 of the Indian Income Tax Act. It discusses income such as agriculture income, income received from a Hindu Undivided Family, share of profit received by a partner, leave travel concession, gratuity, pension, leave salary encashment, amounts received from insurance policies and provident funds, house rent allowance, special allowances, scholarships, government awards, minor children's income, and dividends that are fully or partially exempt from taxable income.
This document lists various types of incomes that are exempted from taxation under Section 10 of the Indian Income Tax Act. It provides a brief description of the incomes exempted, including agricultural income, income from Hindu Undivided Families, shares of income from firms, travel concessions for employees, gratuity, commuted pension values, educational scholarships, allowances for members of parliament and legislatures, awards from government bodies, pensions for military award winners, income from property of former rulers, incomes of local authorities and certain boards and authorities, insurance regulatory bodies, trade unions, provident funds, corporations for scheduled castes and tribes, income from mutual funds, long term capital gains on securities with transaction tax, and dividends from Indian
This document summarizes various types of income that are exempt from tax under the Income Tax Act of India. It discusses income such as agricultural income, income received from an HUF or partnership firm, interest received by non-residents, leave travel concession, foreign allowances for government employees, death/retirement benefits, commutation of pension, encashment of earned leave, retrenchment compensation, and payments from statutory provident funds, recognized provident funds, approved superannuation funds, house rent allowance, and special allowances that are fully or partially exempt from income tax.
The document summarizes exempted income under the Indian Income Tax Act. It discusses three categories of exempted income: (1) for all assesses, (2) for employees, and (3) for institutions. For all assesses, exempted income includes agricultural income, income from Hindu Undivided Families, a partner's share of firm income, compensation for Bhopal gas leak disaster, life insurance proceeds, and certain disaster compensation payments. For employees, exempted income includes leave travel concession, foreign allowances/perquisites, gratuity, commuted pension, leave salary, retrenchment compensation, voluntary retirement compensation, and employer contributions to provident funds. For institutions, exempted categories include income of
Income Tax - Meaning, Implementation and Exempted IncomesRajaKrishnan M
The document provides an overview of key concepts related to income tax in India including:
1) It summarizes the Income Tax Act of 1961 which is the main law governing income tax in India and outlines some key definitions related to income tax.
2) It explains the distinction between capital and revenue receipts and expenditures as well as capital and revenue expenditures which impacts how items are treated for tax purposes.
3) It provides examples of different types of income that are exempt from income tax in India.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
This document discusses various exemptions from income tax for salary income in India. It summarizes provisions related to leave salary, gratuity, pension, allowances, perquisites, provident fund and other deductions from salary that are exempt from tax. Key points include leave salary being fully tax exempt for government employees but with a maximum exemption of average salary for 10 months or Rs. 300,000 for non-govt employees. Gratuity is also exempt up to Rs. 10 lakhs. Certain allowances and perquisites like housing, medical benefits and interest-free loans are partially or fully tax exempt.
This document summarizes various types of non-taxable income under section 10 of the Indian Income Tax Act. It discusses income such as agriculture income, income received from a Hindu Undivided Family, share of profit received by a partner, leave travel concession, gratuity, pension, leave salary encashment, amounts received from insurance policies and provident funds, house rent allowance, special allowances, scholarships, government awards, minor children's income, and dividends that are fully or partially exempt from taxable income.
This document lists various types of incomes that are exempted from taxation under Section 10 of the Indian Income Tax Act. It provides a brief description of the incomes exempted, including agricultural income, income from Hindu Undivided Families, shares of income from firms, travel concessions for employees, gratuity, commuted pension values, educational scholarships, allowances for members of parliament and legislatures, awards from government bodies, pensions for military award winners, income from property of former rulers, incomes of local authorities and certain boards and authorities, insurance regulatory bodies, trade unions, provident funds, corporations for scheduled castes and tribes, income from mutual funds, long term capital gains on securities with transaction tax, and dividends from Indian
This document summarizes various types of income that are exempt from tax under the Income Tax Act of India. It discusses income such as agricultural income, income received from an HUF or partnership firm, interest received by non-residents, leave travel concession, foreign allowances for government employees, death/retirement benefits, commutation of pension, encashment of earned leave, retrenchment compensation, and payments from statutory provident funds, recognized provident funds, approved superannuation funds, house rent allowance, and special allowances that are fully or partially exempt from income tax.
The document summarizes exempted income under the Indian Income Tax Act. It discusses three categories of exempted income: (1) for all assesses, (2) for employees, and (3) for institutions. For all assesses, exempted income includes agricultural income, income from Hindu Undivided Families, a partner's share of firm income, compensation for Bhopal gas leak disaster, life insurance proceeds, and certain disaster compensation payments. For employees, exempted income includes leave travel concession, foreign allowances/perquisites, gratuity, commuted pension, leave salary, retrenchment compensation, voluntary retirement compensation, and employer contributions to provident funds. For institutions, exempted categories include income of
Income Tax - Meaning, Implementation and Exempted IncomesRajaKrishnan M
The document provides an overview of key concepts related to income tax in India including:
1) It summarizes the Income Tax Act of 1961 which is the main law governing income tax in India and outlines some key definitions related to income tax.
2) It explains the distinction between capital and revenue receipts and expenditures as well as capital and revenue expenditures which impacts how items are treated for tax purposes.
3) It provides examples of different types of income that are exempt from income tax in India.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
The document summarizes various types of income that are exempt from tax under Section 10 of the Indian Income Tax Act. Key exemptions include:
1. Agricultural income derived from land used for agricultural purposes in India. Commercial activities like dairy farming and poultry farming do not qualify.
2. Any sum received by an individual as a member of a Hindu Undivided Family (HUF) from the HUF's income/estate, as the HUF is already taxed on this.
3. Partner's share of profits from a firm that is separately assessed for tax purposes, to avoid double taxation.
4. Certain payments received from provident funds, life insurance policies, gratuity,
The document lists over 50 types of income that are exempted from income tax in India under various sections of the Indian Income Tax Act of 1961. Some of the major exemptions include income from agriculture, dividends received by shareholders, remuneration of foreign diplomats, interest from certain securities, family pensions of armed forces, income of religious and charitable trusts, and capital gains on transfer of certain assets. The exemptions aim to avoid double taxation, provide benefits to underprivileged groups, and incentivize sectors like agriculture and exports.
The document discusses exempted incomes under the Indian Income Tax Act of 1961. It covers:
1. Types of exempted incomes such as agricultural income, income of a partner from a firm, life insurance proceeds, interest from certain bonds.
2. Sections of the act that provide exemptions including sections 10, 11, 12, 13, which deal with incomes excluded from total income.
3. Classification of exempted incomes such as those absolutely exempt for all assessees, employees, and institutions. Detailed lists and explanations of exempted incomes are provided for each classification.
This document summarizes exempted incomes under Section 10 of the Indian Income Tax Act. It lists 87 exempted incomes across various sub-sections of Section 10. Some key exempted incomes include agricultural income, interest income from certain bonds/deposits, leave travel concession, provident fund payments, gratuity, family pension received by central/state govt. employees, scholarship amounts, and dividends received from Indian companies. The document was prepared by Dr. Sangeetha R of Hindusthan College of Arts and Science to outline various types of incomes that are exempted from taxable income calculations under the Income Tax Law in India.
Income exempted under section 10 of Income tax Act 1961 for assessment year 2...Dr. Sanjay Sawant Dessai
The document lists various income sources that are exempt from tax under Section 10 of India's Income Tax Act of 1961. Some key exemptions include: agricultural income, income received by members of Hindu Undivided Families, share of partnership profits, leave travel concessions, gratuity payments, voluntary retirement compensation up to Rs. 500,000, life insurance policy proceeds, provident fund withdrawals, superannuation fund payments, certain allowances like transport and children's education, interest on government securities, scholarships for education, dividends, and income from mutual funds.
1. Allowances can be fully exempted, fully taxable, or partially taxable depending on the type of allowance. House Rent Allowance is partially taxable with an exempted amount based on rent paid, salary, and location.
2. Perquisites include non-monetary benefits provided by employers like rent-free housing, cars, food, gifts, etc. Some perquisites are fully exempted from tax while others are fully or partially taxable depending on employee type and conditions.
3. For specified employees like directors, perquisites related to rent-free housing, cars, domestic servants are fully taxable based on prescribed valuation methods even if used for official purposes. Perquisites are valued
The document discusses the taxation of salaries under the Indian Income Tax Act of 1961. It defines what constitutes a salary and examines the relationship between employers and employees. It also outlines what qualifies as taxable salary components according to the Act, including basic salary, allowances, bonuses, retirement benefits, and perquisites.
salaries, income from salaries, taxable salaries, employer, employee, advnace salary, arrears of salary, bonus, tds, tax deducted at source,
profit in lieu of salary, dearness allowance, allownaces, provident fund, perquisites, medical treatment, entertainment allowance,
professional tax, tax on employment,
Computation of Income from salaries for assessment year 2015-16 . Based on Goa university Final yea B Com Syllabus of Accounting Major II - Income tax, service tax and Goa Value added tax
The document provides a comprehensive overview of salary computation and taxability under the Indian Income Tax Act. It defines salary and outlines what types of payments are included as salary for tax purposes. It discusses the tax treatment of various allowances that may be received as part of compensation, categorizing them as fully taxable, partially exempt or fully exempt. The document also provides an example calculation of gross salary for an individual receiving various payments and allowances. The summary covers the key aspects around definitions, tax treatment of common allowances, and includes an example calculation.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
The document lists various types of incomes that are fully or partially exempted from tax under Section 10 of the Indian Income Tax Act. Some key exemptions include agricultural income, income from house property, income of members of armed forces, income of MPs/MLAs, income from certain investments, scholarships, pension funds, and capital gains from sale of certain assets held for long term. The exemptions are subject to various conditions specified under the relevant sections of the Income Tax Act.
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
1. The document discusses various types of salaries, allowances, and perquisites that are taxable or exempt from income tax for government and non-government employees.
2. It covers leave encashment, gratuity, pension received by government employees, voluntary retirement schemes, retrenchment compensation, and various allowances such as HRA, transport allowance, children education allowance etc.
3. It also discusses deductions available under section 16 and specifies which perquisites are taxable or exempt for employees. Maximum exemptions for various allowances are also provided.
Exempt incomes - Income which do not form part of total incomeCA Bala Yadav
This document discusses various types of income that are exempt from tax in India. It explains that exempt incomes do not form part of an assessee's total income for tax computation. Sections 10-13A of the Income Tax Act list incomes that are totally or partially exempt. Some key exempt incomes mentioned include agriculture income, interest from certain bonds/deposits, leave encashment, gratuity, pension received by an assessee, and income of political parties and electoral trusts (subject to conditions). Special provisions like Section 10AA provide tax deductions to new units set up in Special Economic Zones for a certain period.
1. The document discusses various types of salaries, allowances, and perquisites received by government and non-government employees and their tax treatment.
2. It provides details on tax exemption limits and calculations for leave encashment, gratuity, pension received during employment or post-retirement, voluntary retirement compensation, and retrenchment compensation.
3. The document also summarizes different types of allowances received by employees, specifying which allowances are fully or partially tax exempt and which allowances are fully taxable. Exemption limits are provided for various allowances.
4. Finally, it lists various common perquisites provided to employees and whether they are taxable or non-taxable. Exceptions
This document discusses various aspects of salary income under the Indian Income Tax Act. It defines salary and the principles for determining when salary is taxable. It explains the tax treatment of different types of salaries like basic salary, fees, commission, bonus, pension, etc. It also discusses exempted, partially exempted and taxable allowances as well as exempted and taxable perquisites. The document provides details on valuation of perquisites like accommodation and car facilities. It covers provisions related to provident funds like statutory PF, recognized PF and unrecognized PF. It concludes with deductions that can be claimed from gross salary income.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
The document summarizes the tax treatment of income from salary in India. It defines salary and outlines what components are included as salary income. It states that salary income is taxable on a due or receipt basis, whichever is earlier. It provides details on the taxability of various salary allowances and perquisites. Key allowances like house rent allowance and travel allowance are partly exempt from tax up to certain limits. Most other allowances are fully taxable.
The document summarizes various types of income that are exempt from tax under Section 10 of the Indian Income Tax Act. Key exemptions include:
1. Agricultural income derived from land used for agricultural purposes in India. Commercial activities like dairy farming and poultry farming do not qualify.
2. Any sum received by an individual as a member of a Hindu Undivided Family (HUF) from the HUF's income/estate, as the HUF is already taxed on this.
3. Partner's share of profits from a firm that is separately assessed for tax purposes, to avoid double taxation.
4. Certain payments received from provident funds, life insurance policies, gratuity,
The document lists over 50 types of income that are exempted from income tax in India under various sections of the Indian Income Tax Act of 1961. Some of the major exemptions include income from agriculture, dividends received by shareholders, remuneration of foreign diplomats, interest from certain securities, family pensions of armed forces, income of religious and charitable trusts, and capital gains on transfer of certain assets. The exemptions aim to avoid double taxation, provide benefits to underprivileged groups, and incentivize sectors like agriculture and exports.
The document discusses exempted incomes under the Indian Income Tax Act of 1961. It covers:
1. Types of exempted incomes such as agricultural income, income of a partner from a firm, life insurance proceeds, interest from certain bonds.
2. Sections of the act that provide exemptions including sections 10, 11, 12, 13, which deal with incomes excluded from total income.
3. Classification of exempted incomes such as those absolutely exempt for all assessees, employees, and institutions. Detailed lists and explanations of exempted incomes are provided for each classification.
This document summarizes exempted incomes under Section 10 of the Indian Income Tax Act. It lists 87 exempted incomes across various sub-sections of Section 10. Some key exempted incomes include agricultural income, interest income from certain bonds/deposits, leave travel concession, provident fund payments, gratuity, family pension received by central/state govt. employees, scholarship amounts, and dividends received from Indian companies. The document was prepared by Dr. Sangeetha R of Hindusthan College of Arts and Science to outline various types of incomes that are exempted from taxable income calculations under the Income Tax Law in India.
Income exempted under section 10 of Income tax Act 1961 for assessment year 2...Dr. Sanjay Sawant Dessai
The document lists various income sources that are exempt from tax under Section 10 of India's Income Tax Act of 1961. Some key exemptions include: agricultural income, income received by members of Hindu Undivided Families, share of partnership profits, leave travel concessions, gratuity payments, voluntary retirement compensation up to Rs. 500,000, life insurance policy proceeds, provident fund withdrawals, superannuation fund payments, certain allowances like transport and children's education, interest on government securities, scholarships for education, dividends, and income from mutual funds.
1. Allowances can be fully exempted, fully taxable, or partially taxable depending on the type of allowance. House Rent Allowance is partially taxable with an exempted amount based on rent paid, salary, and location.
2. Perquisites include non-monetary benefits provided by employers like rent-free housing, cars, food, gifts, etc. Some perquisites are fully exempted from tax while others are fully or partially taxable depending on employee type and conditions.
3. For specified employees like directors, perquisites related to rent-free housing, cars, domestic servants are fully taxable based on prescribed valuation methods even if used for official purposes. Perquisites are valued
The document discusses the taxation of salaries under the Indian Income Tax Act of 1961. It defines what constitutes a salary and examines the relationship between employers and employees. It also outlines what qualifies as taxable salary components according to the Act, including basic salary, allowances, bonuses, retirement benefits, and perquisites.
salaries, income from salaries, taxable salaries, employer, employee, advnace salary, arrears of salary, bonus, tds, tax deducted at source,
profit in lieu of salary, dearness allowance, allownaces, provident fund, perquisites, medical treatment, entertainment allowance,
professional tax, tax on employment,
Computation of Income from salaries for assessment year 2015-16 . Based on Goa university Final yea B Com Syllabus of Accounting Major II - Income tax, service tax and Goa Value added tax
The document provides a comprehensive overview of salary computation and taxability under the Indian Income Tax Act. It defines salary and outlines what types of payments are included as salary for tax purposes. It discusses the tax treatment of various allowances that may be received as part of compensation, categorizing them as fully taxable, partially exempt or fully exempt. The document also provides an example calculation of gross salary for an individual receiving various payments and allowances. The summary covers the key aspects around definitions, tax treatment of common allowances, and includes an example calculation.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
The document lists various types of incomes that are fully or partially exempted from tax under Section 10 of the Indian Income Tax Act. Some key exemptions include agricultural income, income from house property, income of members of armed forces, income of MPs/MLAs, income from certain investments, scholarships, pension funds, and capital gains from sale of certain assets held for long term. The exemptions are subject to various conditions specified under the relevant sections of the Income Tax Act.
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
1. The document discusses various types of salaries, allowances, and perquisites that are taxable or exempt from income tax for government and non-government employees.
2. It covers leave encashment, gratuity, pension received by government employees, voluntary retirement schemes, retrenchment compensation, and various allowances such as HRA, transport allowance, children education allowance etc.
3. It also discusses deductions available under section 16 and specifies which perquisites are taxable or exempt for employees. Maximum exemptions for various allowances are also provided.
Exempt incomes - Income which do not form part of total incomeCA Bala Yadav
This document discusses various types of income that are exempt from tax in India. It explains that exempt incomes do not form part of an assessee's total income for tax computation. Sections 10-13A of the Income Tax Act list incomes that are totally or partially exempt. Some key exempt incomes mentioned include agriculture income, interest from certain bonds/deposits, leave encashment, gratuity, pension received by an assessee, and income of political parties and electoral trusts (subject to conditions). Special provisions like Section 10AA provide tax deductions to new units set up in Special Economic Zones for a certain period.
1. The document discusses various types of salaries, allowances, and perquisites received by government and non-government employees and their tax treatment.
2. It provides details on tax exemption limits and calculations for leave encashment, gratuity, pension received during employment or post-retirement, voluntary retirement compensation, and retrenchment compensation.
3. The document also summarizes different types of allowances received by employees, specifying which allowances are fully or partially tax exempt and which allowances are fully taxable. Exemption limits are provided for various allowances.
4. Finally, it lists various common perquisites provided to employees and whether they are taxable or non-taxable. Exceptions
This document discusses various aspects of salary income under the Indian Income Tax Act. It defines salary and the principles for determining when salary is taxable. It explains the tax treatment of different types of salaries like basic salary, fees, commission, bonus, pension, etc. It also discusses exempted, partially exempted and taxable allowances as well as exempted and taxable perquisites. The document provides details on valuation of perquisites like accommodation and car facilities. It covers provisions related to provident funds like statutory PF, recognized PF and unrecognized PF. It concludes with deductions that can be claimed from gross salary income.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
The document summarizes the tax treatment of income from salary in India. It defines salary and outlines what components are included as salary income. It states that salary income is taxable on a due or receipt basis, whichever is earlier. It provides details on the taxability of various salary allowances and perquisites. Key allowances like house rent allowance and travel allowance are partly exempt from tax up to certain limits. Most other allowances are fully taxable.
This document outlines various types of income that are exempted from taxation under Section 10 of the Indian Income Tax Act. It lists over 30 categories of income including agricultural income, income from Hindu Undivided Families, income from investments by Non-Resident Indians, allowances received by government employees, compensation received during voluntary retirement, amounts received from life insurance policies, provident funds, scholarships, and more. For each type of exempted income, it specifies the exact section, any applicable limits on the exemption amount, and whether the income is fully or partially exempted.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
The document summarizes various exemptions from income tax under Section 10 of the Income Tax Act. It discusses exemptions for agricultural income, income received as a Hindu Undivided Family member, share of profits from a partnership firm, leave travel concession, gratuity received, compensation received during voluntary retirement, amounts received from life insurance policies, payments from provident funds, payments from approved superannuation funds, house rent allowance, special allowances like conveyance allowance, and daily allowance. Conditions for availing exemptions are explained for various allowances and payments.
Income tax law presentation for the mba studentsKishanjha21
The document provides an overview of income tax in India. It defines key concepts like direct tax, indirect tax, and types of income tax. It describes the components that make up India's income tax law and the process of computing total income and tax liability. It also summarizes various deductions available under Section 80C, 80D, 80E, 80G, 80GG and provides an example computation of tax liability for an individual.
The document summarizes various exemptions under the Income Tax Act of 1961 in India. It discusses exemptions for agricultural income, income received from Hindu Undivided Families and partnership firms, allowances for government employees, death-cum-retirement gratuity, provident funds, house rent allowance, educational scholarships, allowances for Members of Parliament and State Legislatures, awards and rewards, and pensions for gallantry award winners and their families. The document provides details on the sections under which these exemptions are provided and conditions for availing exemptions.
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures. Direct taxes are levied directly on income and indirect taxes are levied on goods and services. The purpose of taxation is to finance government expenditure. The previous year refers to the financial year for which the income is being assessed, while the assessment year refers to the year in which the income from the previous year is assessed for income tax purposes. An assessee refers to a person by whose income tax is payable under the Income Tax Act.
Mr. Manoj receives the following income from salary during the previous year 2021-22:
1. Basic salary of Rs. 90,000
2. Commission of 54,000 which is 60% of basic salary
3. Entertainment allowance of Rs. 12,000
4. Dearness allowance of Rs. 10,000 which forms part of salary
To determine Mr. Manoj's taxable income from salary, standard deduction of Rs. 50,000 will be deducted from the gross salary which includes basic salary, commission, dearness allowance and 50% of entertainment allowance.
This document discusses different types of allowances provided to employees and their tax treatment under Indian income tax law. It categorizes allowances into three types: fully exempted, fully taxable, and partially taxable allowances. Fully exempted allowances include those received by government employees posted abroad and allowances of high court and supreme court judges. Fully taxable allowances include dearness allowance and entertainment allowance of non-government employees. Partially taxable allowances include house rent allowance, travel allowance, and education allowance, with the exemption amount depending on actual expenditure or specified limits. Detailed calculations are provided for determining the taxable portion of house rent allowance and entertainment allowance.
Salaries presentation presented by Sachin GujarRamesh Verma
This document discusses tax implications on salary income in India. It defines salary and outlines various allowances and payments that are included in the taxable salary. It describes exemptions available for conveyance allowance, children's education allowance, medical reimbursements, house rent allowance, and leave travel concession. It also discusses various deductions that can be claimed to reduce taxable income, such as those under Sections 80C, 80D, 80DD, 80E, 80G, and 80GG. The document concludes with tax rates, illustrations of tax calculations, the due date for filing returns, and budget implications for the fiscal year 2007-08.
come and join afterschoool and spread management education to common people so that they may become entrepreneurs. spread knowledge about business, entrepreneurship and commerce.
The document summarizes key aspects of India's income tax law, including:
1) It discusses the various types of taxpayers (individual, HUF, company, etc.), their residential status, and whether their global or domestic income is taxable in India.
2) It outlines the tax rates applicable to different types of income and taxpayers, such as companies, mutual funds, local authorities, capital gains, and income from professions.
3) It describes the deductions allowed from different types of income like salary, house property, business/profession, and the tax treatment of various employee perquisites.
The document summarizes key income tax proposals in India's Union Budget for the assessment year 2021-22. It outlines that income tax rates remain unchanged, with rates of 5%, 20%, and 30% applied to income slabs. It also introduces a new, optional tax regime with lower rates and removal of exemptions/deductions. Key benefits of the new regime include lower taxes but loss of deductions like HRA and standard deduction. The document also discusses changes to residential status rules and removal of dividend distribution tax.
This document discusses the tax treatment of various types of salaries and allowances in India. It explains that salaries paid by employers are considered taxable income. It then categorizes allowances into fully exempted, fully taxable, and partly taxable allowances. Some key partly taxable allowances mentioned are HRA, transport allowance, education allowance, and hostel allowance, which are tax exempt up to certain limits. The document provides details on exemption limits for various partly taxed allowances.
The document outlines Indian income tax rates, deductions, and exemptions for individuals. It provides tax rates for different income brackets for general individuals, resident women under 65, and residents aged 65 and above. It also summarizes common deductions like HRA exemption, medical reimbursement, interest on home loans, capital gains tax, and deductions under Chapter VI-A of the Income Tax Act. Penalties for late filing and payment of taxes are also mentioned.
This document discusses salary and taxation under sections 15, 16 and 17 of India's income tax law. It defines salary and various components that constitute salary such as wages, annuity, pension, gratuity, fees, commissions, perquisites, profits and salary advances. It discusses the tax treatment of various allowances like house rent allowance, travel allowance, entertainment allowance, tuition fees allowance, and medical reimbursement. It also covers income from retirement benefits such as pension, commuted pension, leave encashment, gratuity, retrenchment compensation and voluntary retirement compensation. It provides details on tax exemptions and taxable portions for these retirement incomes.
This document discusses various taxable and partly taxable allowances in India. It provides details on 10 allowances that are fully taxable such as dearness allowance, entertainment allowance, and overtime allowance. It also explains 10 allowances that are partly taxable including house rent allowance, fixed medical allowance, and hill area allowance. The document discusses different types of taxable perquisites such as rent free accommodation, interest free loans, transfer of movable assets, and gifts. It specifically explains perquisites that are taxable in all cases and those taxable in specified cases only, such as use of employer-provided motor cars.
This document provides a summary of key proposals in the Indian Budget 2014-2015 relating to direct taxes, transfer pricing, international taxation, indirect taxes, and other proposals. Some of the key points included are:
- No change in individual or corporate tax rates. Basic exemption limit increased for individuals and senior citizens. Deductions under section 80C and for housing loans increased.
- New investment allowance introduced for manufacturing companies investing over Rs. 25 crores.
- Changes introduced to alternate minimum tax calculations and restrictions on certain expense disallowances.
- Presumptive taxation amounts increased for certain businesses.
- Clarifications provided on taxation of foreign dividends, CSR contributions, and trading losses for
Similar to List of benefits available to salaried persons (20)
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
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In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
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This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
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An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
3. M/S. SURANA MALOO & CO.
(Chartered Accountants)
3
11. Allowances & Perquisitesgiven to serving Chairman/Member of UPSC 10(45) 12
12. Allowances to RetiredChairman/Members of UPSC 10(45) 12
13. Border area / Remote Locality/ Disturbed Area / DifficultArea Allowance 10(14) 13
14. Tribal Area Allowance 10(14) 13
15. Underground Allowances 10(14) 13
16. Compensatory Modified Area Allowance 10(14) 14
17. Compensatory Field Area Allowance 10(14) 14
18. Highly Active Field Area Allowance 10(14) 14
19. Island Duty Allowance 10(14) 14
20. Counter Insurgency Allowance 10(14) 15
21. High AltitudeAllowance 10(14) 15
22. Other Allowances - 15
PERQUISITESU/S17
1. Rent Free Unfurnished Accommodation to Central & Government employees 17(2) (i)/(ii) 17
2. Rent Free Unfurnished Accommodation to other employees 17(2) (i)/(ii) 18
3. Rent Free Furnished Accommodation 17(2) (i)/(ii) 20
4. M/S. SURANA MALOO & CO.
(Chartered Accountants)
4
4. A Furnished Accommodation in a Hotel 17(2) (i)/(ii) 20
5.
5.1 - Motor car/ other conveyance – motor car owned or hired by employers
5.2 - Motor car/ other conveyance – motor car owned by employees
5.3 - Where employees own any other automotiveconveyance & actual running & maintenancecharges are met or reimbursed by employer
17(2) (viii)
21
23
24
6. Services of a domestic servant 17(2) (viii) 25
7. Supply of Gas, Water or Electricityfor household purpose 17(2) (viii) 26
8. Education facilities 17(2) (viii) 27
9. Gift / Voucher / Coupon 17(2) (viii) 27
10. Transport facilities 17(2) (vi) 28
11. ESOP/Sweat Equity Shares 17(2) (viii) 29
12. Interest free loan or loan at concessionalrate of interest 17(2) (viii) 30
13. Facilitiesof Travelling,Touring & Accommodation 17(2) (viii) 31
14. Free Food & Beverages provided to the employees 17(2) (viii) 32
15. Credit Card 17(2) (viii) 33
16. Free Recreation / Club Facilities 17(2) (viii) 33
17. Use of movable assetsof employer by employee 17(2) (viii) 34
18. Transfer of movable assets by employer to its employee 17(2) (viii) 34
5. M/S. SURANAMALOO & CO.
(Chartered Accountants)
5
19. Leave Travel Concessionor Assistance(LTC/LTA) 10(5) 35
20. Medical facilitiesin India 17(2) 36
21. Medical facilitiesoutside India 17(2) 36
22. Any other benefits or amenity extended by employer to employees 17(2)(viii) 37
23. Tax paid by employer on perquisites 10(10CC) 37
24. Other Perquisites - 37
RetirementBenefits U/S10(10)
1. Leave Encashment 10(10AA) 39
2. RetrenchmentCompensation 10(10B) 40
3. Gratuity 10(10) 41
4. Pension - 42
5. Arrear of Salary - 42
6. NPS – National Pension System 10(12A) / 10(12B) 43
7. Voluntary Retirement 10(10C) 43
8. EPF – Employee Provident Fund - 44
9. Other Benefits - 45
7. M/S. SURANA MALOO & CO.
(Chartered Accountants) 7
• This deduction is includedin section
16(ia) of Income Tax Act, 1961.
• Amount of Rs. 50,000 or the amount
of salary, whicheveris lower is
consideredfor deduction.
• E.g.:-
Standard Deduction
Particulars Until
AY
2018-19
From
AY
2019-20
From
AY
2020-21
Gross Salary (in Rs.) 8,00,000 8,00,000 8,00,000
(-) Transport Allowance 19,200 NA NA
(-) Medical Allowance 15,000 NA NA
(-) Standard Deduction NA 40,000 50,000
Net Salary 7,65,800 7,60,000 7,50,000
Entertainment Allowance
• This deduction is includedin section
16(ii) of Income Tax Act, 1961.
• It received bythe Government
employees & Fully taxablein case of
other employees.
• Least of the following is deductible :
a) Rs 5,000
b) 1/5th of salary (excludingany
allowance, benefitsor other
perquisite)
c) Actual entertainment allowance
received
Professional Tax
• This deduction is includedin section
16(iii) of Income Tax Act, 1961.
• Amount actually paidduring the year is
deductible.
• If professional tax ispaid by the
employeron behalf of its employee than
it is first includedin the salary of the
employee asa perquisiteand then same
amount is allowed as deduction.
• The amount of professionaltax
collecteddoes not exceedRs.2400 per
annum in Gujarat.
9. M/S. SURANA MALOO & CO.
(Chartered Accountants)
9
• HRA is included u/s 10(13A) of Income Tax Act, 1961.
• Least of the following is exempt:
a) Actual HRA Received
b) 40% of Salary* (50% for Metro cities)
c) Rent paid minus 10% of salary*
* Salary = Basic + DA
Note:
i. Fully Taxable, if HRA is received by an
employee who is living in his own house or if he
does not pay any rent.
ii. It is mandatory for employee to report PAN of
the landlord to the employer if rent paid is more
than Rs.1,00,000 [Circular No. 08 /2013 dated
10th October, 2013].
House Rent Allowance Children Education Allowance
• Children Education Allowance is included in section 10(14) of Income Tax
Act, 1961.
• Up to Rs. 100 per month per child up to a maximum of 2 children is exempt:
-> For 1 Child, 100*1*12= Rs. 1200/-
-> For 2 Children, 100*2*12= Rs. 2400/-
-> In case of more than 2 Children, 100*2*12= Rs. 2400/-
Hostel Expenditure Allowance
• Hostel Expenditure Allowance is included in section 10(14) of Income Tax
Act, 1961.
• Up to Rs. 300 per month per child up to a maximum of 2 children is exempt:
-> For 1 Child, 300*1*12= Rs. 3600/-
-> For 2 Children, 300*2*12= Rs. 7200/-
-> In case of more than 2 Children, 300*2*12= Rs. 7200/-
10. Conveyance Allowance Daily Allowance
• Conveyance Allowances is included in section 10(14) of
Income Tax Act, 1961.
• It is granted to meet the expenditure on conveyance in
performance of duties of an office.
• It is exempt to the extent of expenditureincurred.
• Conveyance Allowances is included in section 10(14) of
Income Tax Act, 1961.
• It is granted to meet the ordinary daily charges incurred by
an employee on account of absence from his normal place
of duty.
• It is exempt to the extent of expenditureincurred.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
10
Uniform Allowances
• Uniform Allowances is includedin section 10(14) of
Income Tax Act, 1961.
• It is exempt to the extent of expenditureincurred.
Note:
The exemption is for an allowance granted to meet the expenditure
incurred on purchase or maintenance of uniform for the performance
of the duties of an office or employment of profit.
Foreign Allowances
• Foreign Allowances is included in section 10(7) of Income
Tax Act, 1961.
• Foreign allowances or perquisites paid or allowed by
Government to its employees (an Indian citizen) posted
outside India.
• This allowances is fully exempted.
11. Helper/Assistant Allowance
• Helper or Assistant Allowances is includedin section
10(14) of Income Tax Act, 1961.
• It is exempt to the extent of expenditureincurred.
Research Allowance
• Research Allowances is includedin section 10(14)of
Income Tax Act, 1961.
• It is granted for encouragingthe academicresearch and
other professional pursuits.
• It is exempt to the extent of expenditureincurred i.e.
whatever amount of expense an individual will incurred
will be exempt.
NOTE:- The exemption is for an allowance granted to meet the
expenditure incurred on purchase or maintenance of uniform for the
performance of the duties of an office or employment of profit.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
11
Special Compensatory Allowance
• Special Compensatory Allowance is includedin section
10(14) of Income Tax Act, 1961.
• This allowanceis given in Hilly areas.
• Amount exempt from tax varies from Rs. 300 per month to
Rs. 7,000 per month.
12. Allowances & Perquisites given to
serving Chairman/Member of UPSC
• This allowance& perquisitesis includedin section
10(45) of Income Tax Act, 1961.
• Following allowances and perquisites given to serving
Chairman/Memberof UPSC is exempt from tax:
a) Value of rent free official residence
b) Value of conveyancefacilitiesincludingtransport
allowance
c) Sumptuary allowance
d) Leave travel concession
• This allowances& perquisitesis fully exempted.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
12
Allowances & Perquisites given to
retired Chairman/Member of UPSC
• This allowance & perquisites is included in section 10(45) of
Income Tax Act, 1961.
• Allowances and Perquisites given to retired
Chairman/Member of UPSC is exempt but at certain
conditions.
• Certain conditionsare as follows:-
A. Exempt subject to maximum of Rs.14,000 per
month for defraying services of an orderly and for
secretarial assistant on contract basis.
B. The value of residential telephone free of cost and
the number of free calls to the extent of 1500 per month
shall be exempt.
13. Border area / Remote Locality / Disturbed
Area / Difficult Area Allowance
• This allowanceis included in section 10(14) of Income
Tax Act, 1961.
• Amount exempt from tax varies from Rs. 200 per month
to Rs. 1,300 per month.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
13
Tribal Area Allowance
• Tribal Area Allowances is includedin section10(14) of
Income Tax Act, 1961.
• Tribal area allowance given in following area:-
(a) Madhya Pradesh (f) Assam
(b) Tamil Nadu (g) West Bengal
(c) Uttar Pradesh (i) Bihar
(d) Karnataka (j) Orissa
(e) Tripura
• Amount of Rs. 200 per month is given as allowances.
Underground Allowances
• UndergroundAllowances is includedin section 10(14) of
Income Tax Act, 1961.
• It is granted to employees working in uncongenial,
unnaturalclimate in underground mines.
• Amount of Rs. 800 per month is given as allowances.
14. Compensatory Field Area Allowance
• CompensatoryField Area Allowances is includedin section
10(14) of Income Tax Act, 1961.
• If this exemptionis taken, employee cannot claim any
exemption in respect of border area allowance (Subject to
certain conditions and locations).
• Amount of Rs. 2600 per month is given as allowances.
Compensatory Modified Area Allowance
• Compensatory Modified Area Allowances is includedin section
10(14) of Income Tax Act, 1961.
• If this exemptionis taken, employee cannot claim any
exemption in respect of border area allowance (Subject to
certain conditions and locations).
• Amount of Rs. 1000 per month is given as allowances.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
14
Highly Active Field Area Allowance
• Highly Active Field Area Allowances is included in section
10(14) of Income Tax Act, 1961.
• It is granted to members of armed forces (Subject to certain
conditions and locations).
• Amount of Rs. 4200 per month is given as allowances.
Island Duty Allowance
• Island Duty Allowances is included in section 10(14) of Income
Tax Act, 1961.
• Island Duty Allowance granted to members of armed forces in
Andaman and Nicobar and Lakshadweep group of Island.
• Amount of Rs. 3250 per month is given as allowances.
15. Counter Insurgency Allowance
• Counter Insurgency Allowances is includedin section
10(14) of Income Tax Act, 1961.
• It is granted to members of Armed Forces operating in
areas away from their permanent locations.
• If this exemptionis taken, employee cannot claim any
exemption in respect of border area allowance (Subject to
certain conditions and locations).
• Amount of Rs. 3900 per month is given as allowances.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
15
High Altitude Allowance
• High Altitude Allowances is includedin section 10(14) of
Income Tax Act, 1961.
• It is granted to armed forces operating in high altitude
areas (Subject to certain conditionsand locations).
• That certain conditions & locations includes:-
a) Up to Rs. 1,060 p.m. (for altitude of9,000-15,000 ft.)
b) Up to Rs. 1,600 p.m. (for altitude above 15,000feet)
Other Allowances
SECTION PARTICULARS EXEMPTION
- Allowancesto Judges of High Court/Supreme Court
Fully exempted.
- Allowancespaid by the UNO to its employees
10(14) Any Allowancegranted to meet the cost of travel on tour or on transfer Exempt to the extent of expenditure incurred
17. Rent Free Unfurnished Accommodation to Central and State Government
employees
• This perquisite fall under sec. 17(2) (i)/(ii) of Income Tax Act, 1961.
• LicenseFees determinedin accordancewith rules framed by Government for allotment of houses shall be deemed to be the
taxablevalue of perquisites.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
17
18. Rent Free Unfurnished Accommodation to other employees
• This perquisite fall under section 17(2) (i)/(ii) of Income Tax Act, 1961.
• If House Propertyis owned by the employer:
i. 15% of salary, if populationof city where accommodationis providedexceeds25 lakhs as per 2001 census
ii. 10% of salary, if populationof city where accommodationis provided exceeds 10 lakhs but does not exceed 25lakhs as
per 2001 census
iii. 7.5% of salary, if accommodation is provided in any other city
• If House Property is taken on lease or rent by the employer, the perquisite valueshall be :
Lease rent paid OR Payable by the employer OR 15% of the salary, whicheveris lower.
*Salary includes:- Basic Pay, Dearness Allowance (only to the extent it forms part of retirement benefit salary), Bonus,
Commission, All other allowances& monetarypayment (only taxableportion)
But does not include:- Value of any perquisite[under section 17(2)], Employer’scontributionto PF, Benefits receivedat the
time of retirementlike gratuity, pension etc.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
18
19. Continued…
Notes:-
1) Rent free accommodationis not chargeableto tax if providedto an employee working at miningsite or an on-shoreoil exploration
site, etc.,—
(i) which is being of temporarynature (subject to conditions)
(ii) which is locatedin remote area.
2) Rent free accommodationif provided to High Court or Supreme Court Judges, Union Ministers, Leader ofOpposition in
Parliament,an officialin Parliament and Serving Chairman and members of UPSC is Tax Free Perquisites.
3) The value so determinedshall be reduced by the amount of rent, if any, paid by the employee.
4) If employeeis transferredand retainproperty at both the places, the taxablevalue of perquisites for initial periodof 90 days shall
be determinedwith reference to only one accommodation(at the option of the assessee). The other one will be tax free. However after
90 days, taxablevalue of perquisitesshall be charged with reference to both the accommodations.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
19
20. Rent Free Furnished Accommodation
• This perquisite fall under sec. 17(2) (i)/(ii) of Income Tax
Act, 1961.
• Taxable value of perquisites
a) Find out taxable value of perquisiteassuming
accommodationto be provided to the employee is
unfurnished
b) Add: 10% of original cost of furniture and fixtures
(if these are owned by the employer)or actualhigher
chargespaid or payable (if these are taken on rent by
the employer).
Note: The value so determined shall be reduced by the amount of
rent, if any, paid by the employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
20
• This perquisite fall under sec. 17(2) (i)/(ii) of Income Tax
Act, 1961.
Taxable value of perquisites
• Value of perquisite shallbe lower of following:
a) Actual chargespaid or payable by the employerto
such hotel
b) 24% of salary
Note: Hotel accommodation will not be chargeable to tax if :
a) It is provided for a total period not exceeding in
aggregate 15 days in the financial year; and
b) Such accommodation in hotel is provided on employee’s
transfer from one place to another place.
Furnished Accommodation in Hotel
21. Motor Car / Other Conveyance – Motor Car is owned or hired by the employer
Sr.
No.
Circumstances Engine Capacity upto 1600 cc
(value of perquisite )
Engine Capacity above 1600 cc
(value of perquisite)
1. Where maintenances and running expenses including remuneration of the driver are met or reimbursed by the employer.
1-A. If car is used whollyand exclusively
in the performanceof officialduties.
Fully exempt subject to maintenance of specified
documents
Fully exempt subject to maintenance of specified
documents
1-B. If car is used exclusivelyfor personal
purposes of employee or any member
of his household.
Actual amount of expenditure incurred by the employer on the running and maintenance of motor car
including remunerationpaid by the employer to the driver and increasedby the amount representingnormal
wear and tear of the motor car at 10% p.a. of the cost of vehicle less an y amount charged from the employee
for such use is taxable
1-C. The motor car is used partly in the
performance of duties and partly for
personal purposes of t he employee or
any member of his household
Rs. 1,800 per month (plus Rs. 900 per month, if
driver is also provided to run the motor car).
Nothing is deductible in respect of any amount
recovered from the employee.
Rs. 2,400 per month (plus Rs. 900 per month, if
driver is also provided to run the motor car).
Nothingis deductible in respect of any amount
recovered from the employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
21
22. Continued…
Sr.
No.
Circumstances Engine Capacity upto 1600 cc
(value of perquisite )
Engine Capacity above 1600 cc
(value of perquisite)
2. Where maintenances and running expenses are met by the employee.
2-A. If car is used whollyand exclusively in
the performance of officialduties.
Not a perquisite,hence, not taxable. Not a perquisite,hence, not taxable.
2-B. If car is used exclusivelyfor personal
purposes of employee or any member of
his household.
Expenditure incurred by the employer (i.e.hire charges, if car is on rent or normal wear and tear at 10% of
actual cost of the car) plus salary of driver if paid or payable by the employer minus amount recovered
from the employee.
2-C. The motor car is used partly in the
performance of duties and partly for
personal purposes of t he employee or
any member of his household
Rs. 600 per month (plus Rs. 900 per month, if
driver is also provided to run the motor car).
Rs. 900 per month (plusRs. 900 per month, if driver
is also provided to run the motor car).
M/S. SURANA MALOO & CO.
(Chartered Accountants)
22
NOTE:-Motor Car (taxable only in case of specifiedemployees) except when car owned by the employee is used by him or members of his household wholly for
personal purposes and for which reimbursementis made by the employer).
23. Motor Car / Other Conveyance – Motor Car is owned by the employee
Sr.
No.
Circumstances Engine Capacity upto 1600 cc
(value of perquisite )
Engine Capacity above 1600 cc
(value of perquisite)
1. Where maintenances and running expenses including remuneration of the driver are met or reimbursed by the employer.
1-A. The reimbursementis for the use of the
vehicle wholly and exclusivelyfor official
purposes
Fully exempt subject to maintenance of specified
documents
Fully exempt subject to maintenance of specified
documents
1-B. The reimbursementis for the use of the
vehicle exclusivelyfor the personal purposes
of the employee or any member of his
household
Actual expenditure incurred by the employer minus amount recovered from the employee
1-C. The reimbursementis for the use of the
vehicle partly for officialpurposes and
partlyfor personal purposes of the employee
or any member of his household.
Actual expenditure incurred by the employer
minus Rs. 1800 per month and Rs. 900 per
month if driver is also provided minusamount
recovered from employee.
Actual expenditure incurred by the employer
minus Rs. 2400 per month and Rs. 900 per month
if driver is also provided minus amount recovered
from employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
23
24. Where the employee owns any other automotive conveyance and actual running and
maintenance charges are met or reimbursed by the employer
Sr.
No.
Circumstances Engine Capacity upto 1600 cc
(value of perquisite )
Engine Capacity above 1600 cc
(value of perquisite)
A. Reimbursementfor the use of the vehicle
wholly and exclusivelyfor officialpurposes
Fully exempt subject to maintenance of
specifieddocuments
Fully exempt subject to maintenance of specified
documents
B. Reimbursementfor the use of vehicle partly
for officialpurposes and partly for personal
purposes of employee.
Actual expenditure incurred by the employer
minus Rs. 900 per month minus amount
recovered from employee
Not Applicable
M/S. SURANA MALOO & CO.
(Chartered Accountants)
24
25. Services of a Domestic Servant
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• Services of a domestic servant including sweeper,gardener, watchmen or personal at Tendant (Taxablein case of specified
employee only)
• The following employeesare deemed as specified employees:
1) A director-employee
2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying20% or more voting
power) in the employer-company
3) An employee whose monetary income* under the salary exceeds Rs. 50,000
NOTE:- *MonetaryIncome means Income chargeableunder the salary but excludingperquisitevalue of all non-monetary
perquisites
• Taxablevalue of perquisite shallbe salary paid or payable by the employerfor such servicesless any amount recoveredfrom the
employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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26. Supply of Gas, Electricity or Water For Household purposes
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• Taxablevalue of perquisites:
1) Manufacturing costper unit incurred bythe employer., if provided fromresourcesowned by the employer;
2) Amount paid by the employer, if purchasedby the employer from outside agency
Note:
i. Any amount recovered from the employee shall be deducted from the taxable value of perquisite.
ii. Taxable in case of specified employees only
• The following employees are deemed as specified employees:
1) A director-employee
2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the
employer company
3) An employee whose monetary income* under the salary exceeds Rs. 50,000
*Monetary Income means Income chargeable under the salary but excluding perquisite value of all non-monetary perquisites.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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27. Education Facilities
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Facility
extended to
Value of perquisite
Provided in the school owned by the employer Provided in any other school
Children
Cost of such education in similarschool less Rs. 1,000 per month per child
(irrespectiveof numbers of children) less amount recovered from employee
Amount incurred less amount recovered from employee (an
exemption of Rs. 1,000 per month per child is allowed)
Other family
member Cost of such education in similarschool less amount recovered from employee Cost of such education incurred
Particulars Taxable value of Perquisites
Reimbursementof school fees of children or familymember of employees
Fully taxable
Free educational facilities/trainingof employees
Gift / Voucher / Coupon
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• This gift / voucher / coupon, which was received on ceremonial occasions or otherwise provided to the employee.
• Taxable value of perquisites:-
a) Gifts in cash or convertible into money (like gift cheque) are fully taxable
b) Gift in kind up to Rs.5,000 in aggregate per annum would be exempt, beyond which it would be taxable.
28. Transport facilities
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• Transport facilities provided by the employer engaged in carriage of passenger or goods (except Airlines or Railways) (Taxable in case
of specified employee only)
o The following employees are deemed as specified employees:
1) A director-employee
2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the
employer-company
3) An employee whose monetary income* under the salary exceeds Rs. 50,000
*Monetary Income means Income chargeable under the salary but excluding perquisite value of all non-monetary perquisites.
• Value at which services are offered by the employer to the public less amount recovered from the employee shall be a taxable perquisite.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
28
29. ESOP (Employee Stock Ownership Plan) / Sweat Equity Shares
• This perquisite fall under sec. 17(2) (vi) of Income Tax Act, 1961.
• Taxable value of perquisites
Fair Market value of shares or securitieson the date of exercise of optionby the assessee less amount recovered from the
employee inrespect of such shares shall be the taxablevalue of perquisites.
NOTE:- Fair market value shall be determinedas follows:
a) In case of listed Shares: Average of openingand closing price as on date of exerciseof option (Subject to certain
conditionsand circumstances)
b) In case of unlisted shares/ security other than equity shares: Value determined bya Merchant Banker as on date of
exercise ofoption or an earlier date, not being a date which is more than 180 days earlierthan the date of exerciseof
the option.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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30. Interest free loan or Loan at concessional rate of interest
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• Interest free loan or loan at concessional rate of interest given by an employer to the employee (or any member of his household) is a perquisite
chargeable to tax in the hands of all employees on following basis:
1. Find out the ‘maximum outstanding monthly balance’ (i.e. the aggregate outstanding balance for each loan as on the last day of each month);
2. Find out rate of interest charged by the SBI as on first day of relevant previous year in respect of loan for the same purpose advanced by it;
3. Calculate interest for each month of the previous year on outstanding amount (mentioned in point 1) at the rate of interest (given in point 2)
4. Interest actually recovered from employee , if any
5. The balance amount (point 3 - point 4) is taxable value of perquisite
• Nothing is taxable if:
a) Loan in aggregate does not exceed Rs 20,000
b) Loan is provided for treatment of specified diseases (Rule 3A) like neurological diseases, Cancer, AIDS, Chronic renal failure, Hemophilia
(specified diseases). However, exemption is not applicable to so much of the loan as has been reimbursed to the employee under any medical
insurance scheme.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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31. Facility of Travelling, Touring And Accommodation
• This perquisite fall under sec. 17(2) (viii) of Income Tax Act, 1961.
• This Facility of travelling, touring and accommodation availed of by the employee or any member of his household for any
holiday.
• Taxablevalue of perquisites:-
a) Perquisite value taxable in the hands of employee shall be expenditure incurred by the employer less amount
recoveredfrom employee.
b) Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of
benefit shall be taken to be the value at which such facilities are offered by other agencies to the public less amount
recoveredfrom employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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32. Free food and beverages provided to the employee
• This perquisite fallunder sec. 17(2) (viii) of Income Tax Act, 1961.
• Taxablevalue of perquisites:-
1) Fully Taxable
Free meals in excessof Rs. 50 per meal less amount paid by the employee shallbe a taxable perquisite
2) Exempt from tax
Following free meals shall be exempt from tax
a) Food and non-alcoholicbeverages provided during working hours in remote area or in an offshore installation;
b) Tea, Coffee or Non-Alcoholic beveragesand Snacks during working hours are tax free perquisites;
c) Food in office premises or through non-transferablepaid vouchersusable only at eating joints provided byan
employeris not taxable, if cost to the employer is Rs. 50 (or less) per meal.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
32
33. Credit Card
• This perquisite fall under sec. 17(2) (viii) of Income Tax
Act, 1961.
• Taxable value of perquisites:-
a) Expenditure incurred by the employer in respect of
credit card used by the employee or any member of
his household less amount recovered from the
employee is a taxable perquisite.
b) Expenses incurred for official purposes shall not be
a taxable perquisite provided complete details in
respect of such expenditure are maintained by the
employer.
Free Recreation/ Club Facilities
• This perquisite fall under sec. 17(2) (viii) of Income Tax
Act, 1961.
• Taxable value of perquisites:-
a) Expenditure incurred by the employer towards
annual or periodical fee etc. (excluding initial fee to
acquire corporate membership) less amount
recoveredfrom the employee is a taxableperquisite
b) Expenses incurred on club facilities for the official
purposes are exempt from tax.
c) Use of health club, sports and similar facilities
provided uniformly to all employees shall be exempt
from tax.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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34. Use of movable assets of the
employer by the employee is a
taxable perquisite
• This perquisite fall under sec. 17(2) (viii) of Income
Tax Act, 1961.
• Taxable value of perquisites
a) Use of Laptops and Computers: Nil
b) Movable asset other than Laptops,
computers and Motor Car*: 10% of original
cost of the asset (if asset is owned by the
employer) or actual higher charges incurred by
the employer (if asset is taken on rent) less
amount recoveredfrom employee.
*See motor car allowances for computation of perquisite
value in case of use of the Motor Car.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
34
Transfer of movable assets by an employer
to its employee
• This perquisite fall u/s 17(2) (viii) of Income Tax Act, 1961.
• Taxablevalue of perquisites
a) Computers, Laptop and Electronics items: Actual cost of
asset less depreciation at 50% (using reducing balance
method) for each completed year of usage by employer less
amount recovered from the employee
b) Motor Car: Actual cost of asset less depreciation at 20%
(using reducing balance method) for each completed year of
usage by employer less amount recoveredfrom the employee
c) Other movable assets: Actual cost of asset less depreciation
at 10% (on SLM basis) for each completed year of usage by
employer less amount recovered from the employee.
35. Leave Travel Concession or Assistance (LTC/LTA)
• This perquisitesfall under sec. 10(5) of Income Tax Act, 1961.
• It is given by an employer to an employee for going anywhere in India along with his family*.
• The exemption shall be limited to fare for going anywhere in India:-
i. Journey by Air -Airfare of economy class in the NationalCarrierby the shortest route or the amount spent, whichever is lower.
ii. Journey by Rail- Air-conditionedfirstclass railfare by the shortest route or the amount spent, whichever is lower.
iii. If places of origin of journey and destination are connected by rail but the journey is performed by any other mode of transport - Air-conditioned
firstclass rail fare by the shortestroute or the amount spent, whichever is lower.
iv. Exemption limitwhere the places of origin of journey and destination are not connected by rail:
a) Where recognized public transport system exists - First Classor deluxe class fare by the shortestroute or the amount spent, whichever is lower.
b) Where no recognized public transport system exists - Air conditioned first class rail fare by shortest route or the amount spent, which ever is
lower.
NOTE:- (a) *Family includes spouse, children and dependent brother/sister/parents. However, family doesn’t include more than 2 children of an Individual born on or
after 01-10-1998.
(b) Two journeys in a block of 4 calendar years is exempt.
(c)Taxableonly in case of Specified Employees.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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36. Medical facilities
In India
• This perquisites fall under sec. 17(2) of Income Tax Act, 1961.
• Taxable value of perquisites:-
1. Expense incurred or reimbursed by the employer for the medical
treatment of the employee or his family (spouse and children,
dependent - parents, brothers and sisters) in any of the following
hospital is not chargeable to tax in the hands of the employee:
a) Hospital maintained by the employer.
b) Hospital maintained by the Government or Local Authority
or any other hospital approved by Central Government
c) Hospital approved by the Chief Commissioner having
regard to the prescribed guidelines for treatment of the
prescribed diseases.
2. Medical insurance premium paid or reimbursed by the employer
is not chargeable to tax.
Outside India
M/S. SURANA MALOO & CO.
(Chartered Accountants)
36
• This perquisites fall under sec. 17(2) of Income Tax Act, 1961.
• Taxable value of perquisites:-
Any expenditure incurred or reimbursed by the employer for
medical treatment of the employee or his family member outside
India is exempt to the extent of following (subject to certain
condition):
a) Expenses on medical treatment - exempt to the
extent permitted by RBI.
b) Expenses on stay abroad for patient and one
attendant - exempt to the extent permitted by RBI.
c) Cost on travel of the employee or any family or one
attendant - exempt, if Gross Total Income (before
including the travel expenditure) of the employee,
does not exceed Rs. 2,00,000.
37. Any other benefit or Amenity extended by
employer to employee
• This perquisites fall u/s 17(2) (viii) of Income Tax Act, 1961.
• Taxablevalue of perquisite shall be computed on the basis of
cost to the employer(under an arm’s length transaction)less
amount recoveredfrom the employee.
• However expenseson telephonesincluding a mobile phone
incurred bythe employeron behalf of employee shall not be
treated astaxable perquisite.
Tax paid by the employer on perquisites
• This perquisites fall under sec. 10(10CC) of Income Tax Act,
1961.
• This is tax paid by the employeron perquisites (not provided
for by way of monetarypayments)given to employee.
• This will be fully exempt.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Other Perquisites
• Amount payableby employerto effect an insurance onlife of employee or to effect a contractfor an annuity is fully taxable u/s17(2)(v).
• Employer’s contributiontowards superannuationfund is taxable in the hands of employee to the extent such contributionexceed
Rs.1,50,000 u/s 17(2)(vii).
• Any sum paid by employer in respect of any obligation ofan employeeis fully taxable u/s 17(2)(iv).
39. Leave Encashment
• This retirement benefits fall under sec. 10(10AA) of Income Tax Act, 1961.
1. Encashment of unutilizedearned leave at the time of retirement of Government employees will be fully exempt.
2. Encashment of unutilizedearned leave at the time of retirement of other employees (not being a Government employee)
Least of the following shall be exempt from tax:
a) Amount actually received
b) Unutilized earnedleave*X Average monthly salary
c) 10 months Average Salary**
d) Rs. 3,00,000
*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the
current employer
**Average salary = Average Salary***of last 10 months immediately preceding the retirement
***Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirementbenefits)+turnover based commission.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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40. Retrenchment Compensation
• This retirement benefits fall under sec. 10(10B) of Income Tax Act, 1961.
• Retrenchment Compensation received bya workman under the Industrial DisputeAct, 1947 (Subject to certain conditions).
Least of the following shall be exempt from tax:
a) an amount calculatedas per section25F(b) of the Industrial Disputes Act, 1947;
b) Rs. 5,00,000; or
c) Amount actuallyreceived
Note:
i. Relief under Section 89(1) is available
ii. 15 days averagepay for each completed yearof continuousservice or any part thereof in excess of 6 months is to be
adopted under section 25F(b) of the Industrial Disputes Act, 1947.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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41. Gratuity
• Gratuity received by Government Employees (Other than employees of statutory corporations) is fully exempt u/s 10(10)(i).
• Who are covered under Gratuity Act, 1972 (Subject to
certain conditions) u/s 10(10)(ii).
• Least of following amount is exempt from tax:
1. (*15/26) X Last drawn salary** X completed year of
service or part thereof in excess of 6 months.
2. Rs. 20,00,000
3. Gratuity actually received
*7 days in case of employee of seasonal establishment.
** Salary = Last drawn salary including DA but excluding any
bonus, commission, HRA, overtime and any other allowance,
benefits or perquisite.
• Who are not covered under Gratuity Act, 1972 (Subject to
certain conditions) u/s 10(10)(iii).
• Least of following amount is exempt from tax:
1. Half month’s Average Salary* X Completed years of
service
2. Rs. 20,00,000
3. Gratuity actually received
*Average salary = Average Salary of last 10 months immediately
precedingthe month of retirement
** Salary = Basic Pay + DA (to the extent it forms part of
retirement benefits)+ turnover basedcommission.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Death -cum-Retirement Gratuity received by other Government employees
42. Pension
• Pension received from United Nation Organization by the employee of his family members is fully exempt.
• Commuted Pension received by an employee Central Government, State Government, Local Authority Employees and Statutory
Corporation is fully exempt u/s 10(10A)(i).
• Commuted Pension received by other employees who also receive gratuity, for them 1/3 of full value will be exempt from tax u/s
10(10A)(ii).
• Commuted Pension received by other employees who do not receive any gratuity, for them 1/2 of full value will be exempt from
tax u/s 10(10A)(iii).
• Family Pension received by the family members of Armed Forces is fully exempt u/s 10(19).
• Family Pension received by the family members in any other case, for them 33.33% of family pension subject to maximum of Rs.
15,000 shall be exempt from tax u/s 57(iia).
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Arrear of Salary
• Taxablein the year of receipt. However relief under section 89 is available.
43. Voluntary Retirement
• This retirement benefits fall under sec. 10(10C) of Income
Tax Act, 1961.
• Least of the following is exempt from tax:
1. Actual amount received as per the guidelines i.e.
least of the following:-
a) 3 months salary for each completed year of
services
b) Salary at the time of retirement X No. of
months of services left for retirement; or
2. Rs. 5,00,000
National Pension System (NPS)
• This retirement benefits fall under sec. 10(12A)/(12B) of
Income Tax Act, 1961.
• Any payment from the National Pension System Trust to an
assessee on closure of his account or on his opting out of the
pension scheme referred to in section 80CCD, to the extent
it does not exceed 60% of the total amount payable to him at
the time of such closure or his opting out of the scheme.
Note:
Partial withdrawal from the NPS shall be exempt to the extent of
25% of amount of contributions made by the employee.
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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44. Employee’s Provident Fund
• Tax treatment in respect of contributions made to and payment from various provident funds are summarized in the table given below:
NOTE:- * Salary = Basic Pay + Dearness Allowance(to the extent it forms part of retirementbenefits) + turnover based commission
Payment from recognized provident fund shall be exempt in the hands of employees in followingcircumstances:
a) If employee has rendered continue service with his employer (including previous employer, when PF account is transferred to current employer) for
a period of 5 years or more
b) If employee has been terminatedbecause of certain reasons which are beyond his control (ill health, discontinuationof business of employer,etc.)
M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Particular Statutory PF Recognized PF Unrecognized PF P.P.F.
Employers contribution to provident fund Fully Exempt Exempt only to the extent of 12% of salary* Fully Exempt -
Deduction u/s 80C on employees contribution Available Available Not available Available
Interest credited to provident fund Fully Exempt
Exempt only to the extent rate of interest
does not exceed 9.5%
Fully Exempt Fully Exempt
Payment received at the time of retirement or
termination of service
Fully Exempt
Fully Exempt (Subject to certain conditions
& circumstances)
Fully Taxable (except
employee’s contribution)
Fully Exempt
45. M/S. SURANA MALOO & CO.
(Chartered Accountants)
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Other Benefits
• Lump-sum payment made gratuitously or by way of compensation or otherwise to widow or other legal heirs of an employee who
dies while still in active service [Circular No. 573, dated 21-08-1990] will be fully exempt in the hands of widow or other legal
heirs of employee.
• Ex-gratia payment to a person (or legal heirs) by Central or State Government, Local Authority or Public Sector Undertaking
consequent upon injury to the person or death of family member while on duty [Circular No. 776, dated 08-06-1999] will be fully
exempt in the hands of individual or legal heirs.
• Salary received from United Nation Organization [CircularNo. 293, dated 10-02-1981]will be fully exempt.
• Remuneration received by non-resident foreign citizen as an employee of a foreign enterprise for services rendered in India will
be fully exempt, if:
a) Foreign enterprise is not engagedin any trade or business in India
b) His stay in India does not exceed in aggregate a period of 90 days in such previous year
c) Such remuneration is not liable to deductedfrom the income of employer chargeable under this Act
• Salary received by a non-resident foreign national for services rendered in connection with his employment on a
foreign ship if his total stay in India does not exceed 90 days in the previous year will be fully exempt.
• Salary & Allowances received by a teacher /professor from SAARC member state (Subject to certain conditions) will be fully
exempt.
Taxable only in the hands of specified employees [See note 4]
Facility extended to -- Value of perquisite Provided in the school owned by the employer --- Value of perquisite Provided in any other school Children Cost of such education in similar school less Rs. 1,000 pe r month per child (irrespective of numbers of children) le ss amount recovered from employee Amount incurred less amount recovered fro m employee (an exemption of Rs. 1,000 per month per child is allowed) Other f amily membe r Cost of such education in similar school less amount reco vered from employee Cost of such education incurred 2.1 Other Educational Facilities Particulars Taxable Value of Perquisites Reimbursement of school fees of children or family member of employees Fully taxable Free educational facilities/ training of employees Fully exempt