Question: What Is Exemption U/S 10 In Salary Slip?

What is the maximum exemption under section 10?

An allowance of up to INR 100 per month, per child, is tax-free under Section 10.

Also, there is a hostel allowance for expenses that are made towards a child’s hostel fee, up to INR 300 per month per child.

This exemption can be availed for two children only..

What is US 10 in income tax?

The objective of section 10 of the Income Tax Act is to reduce the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and so on.

What is salary u/s 17 2?

Prior to the substitution clause (ii), as substituted by the Finance Act, 1992, w. e. f. 14- 1993, read as under:” (ii) any sum paid by the employer- (a) in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family in any hospital maintained by the …

How is exempted HRA calculated?

How is Exemption on HRA calculated ?Actual HRA received from employer.For those living in metro cities: 50% of (Basic salary + Dearness allowance) For those living in non-metro cities: 40% of (Basic salary + Dearness allowance)Actual rent paid minus 10% of (Basic salary + Dearness allowance)

What is 10/10 D in income tax?

Section 10(10)D of the Income Tax Act, 1961 As per Section 10(10D) of the Income Tax Act, 1961 the amount of sum assured plus any bonus (i.e. the policy proceeds) paid on maturity or surrender of policy or on death of the insured are completely tax free for the receiver subject to certain conditions.

What is Section 10 14 of income tax?

As per Section 10(14)(i) of the Income-tax Act, 1961 (Act), any allowance or benefit granted to the employees to meet expenses wholly, necessarily and exclusively towards performance of official duties (normally referred to as per diems) are exempt from tax, provided such an expense is actually incurred by the …

What is the value of perquisites as 17 2?

Perquisites are also referred to as fringe benefits. Broadly, “perquisite” is defined in the section 17(2) of the Income-tax Act as including: 1) Value of rent-free or concessional rent accommodation provided by the employer.

Is HRA a perquisite?

HRA is an allowance which is added to your salary and is tax exempt to a certain extent (as per IT rules) whereas CLA is treated as a perquisite (a benefit which is given by company to employee) and is taxable in the hands of the employee.

What are the exemption under section 10?

Exemptions under Section 10 of Income Tax ActSection and Sub-sectionCategoryExemption10(2)Income of a member of Hindu –undivided FamilyNo tax10(10C)Voluntary retirement compensationExempt up to Rs. 5 lakh10(10D)Life insurance benefit including bonusNo tax10(11)(12)Amount withdrawn from provident fundNo tax4 more rows•Jul 6, 2020

What is exemption u/s 16 in salary slip?

Deduction u/s 16(ia) states that a tax payer having income chargeable under the head ‘Salaries’ shall be allowed a deduction of ₹ 40,000 or the amount of salary, whichever is less, for computing his total income.

What is Section 10 15 of Income Tax Act?

Interest Income exempted under section 10(15) of Income Tax Act, 1961. Interest income or premium on redemption or other payments on notified securities; bonds; annuity certificates; savings and other certificates. … Interest income on notified Relief Bonds. The exemption is available only to Individual and HUF.

What is section 17 of Income Tax Act?

Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to …

What are the exempted incomes?

For self-employed or non-salary account holders, there are certain incomes categorized under exempt income. They include dividends, agricultural income, interest on funds, capital gains which has to be disclosed under Schedule EI while filing income tax as per ITR-1.