exemptions for salary

This query is : Resolved

HAFIS RAHMAN .P.K (Querist)
Follow

26 August 2016 is there any expense we can claim as deduction which is not there in form 16 and other than travelling expense (1600 p.m) .

ACA Anurag

ACA Anurag (Expert)
Follow

26 August 2016 Dear Hafis, There are so many other expense like tuition fees of children, Drives allowance. kindly take a professional advise kindly like if my response has helped you

HAFIS RAHMAN .P.K

HAFIS RAHMAN .P.K (Querist)
Follow

28 August 2016 but sir....they all need to show in form 16 ...my frd has only gross salary 5 lakh rupees.

Upgrade to CAclubindia Pro. Subscribe Now!

HAFIS RAHMAN .P.K

HAFIS RAHMAN .P.K (Querist)
Follow

28 August 2016 no other allowance. But he claim travelling on the assumption that it will be there in gross salary ,(as we all claim even form 16 don't mentioned it.i want to know any other expense like that to deduct his tax

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

21 July 2024 For individuals receiving salary income, deductions and exemptions under the Income Tax Act can help reduce taxable income. However, it's important to note that deductions must be supported by appropriate documentation and are subject to specific conditions. Here are some deductions that can potentially be claimed:

### Common Deductions for Salary Income:

1. **Standard Deduction (for FY 2022-23 and onwards)**:
- A standard deduction of ₹50,000 or the amount of salary, whichever is less, is available to salaried individuals. This deduction is allowed irrespective of actual expenses incurred.

2. **Professional Tax**:
- Any professional tax paid during the year can be claimed as a deduction from salary income.

3. **Interest on Home Loan (Section 24)**:
- If your friend has taken a home loan and is paying interest on it, he can claim deduction under Section 24 up to ₹2 lakh per year for a self-occupied property.

4. **Education Loan Interest (Section 80E)**:
- If your friend has taken an education loan for higher studies, he can claim deduction for the interest paid under Section 80E. This deduction is available for a maximum of 8 years or until the interest is fully repaid, whichever is earlier.

5. **Medical Insurance Premium (Section 80D)**:
- Premium paid for medical insurance for self, spouse, children, and parents can be claimed as a deduction under Section 80D. The deduction limit varies based on the age of the insured individuals.

6. **Donations (Section 80G)**:
- Donations made to specified funds and charitable institutions are eligible for deduction under Section 80G. The deduction amount depends on the type of donation and the recipient organization.

7. **House Rent Allowance (HRA)**:
- If HRA is received as part of salary and the individual pays rent for accommodation, HRA exemption can be claimed under Section 10(13A).

### Considerations:

- **Form 16**: Deductions like HRA and professional tax are usually reflected in Form 16 if they are part of the salary structure.
- **Documentation**: Ensure proper documentation (such as rent receipts, loan interest certificates, medical insurance premium receipts, donation receipts) is maintained to substantiate the claims made.

### Conclusion:

While claiming deductions, it's crucial to adhere to the provisions of the Income Tax Act and maintain accurate records. Tax planning should be done in consultation with a tax advisor or chartered accountant to ensure compliance and to maximize tax savings based on individual circumstances.