Tax free salary component for financial year 16-17 read mor
This query is : Resolved
07 April 2016
Dear Expert,
I have search lot of forums but somewhere half information and somewhere information not clear, so i am really looking for good reply in detail which will helpful to lots of employee and company. So my sincere request to experts please reply to this query very seriously.
I am looking for tax free salary component for Financial Year 16-17 :- ( I am sharing you what I know )
1) HRA - I am aware and I am submitting rent agreement and rent receipt for this. No limit of exemption right?
2) Transport Allowance -Rs 1600 per month and no document require.
3) Medical Reimbursement - Rs 1250 per month - Proofs required
4) what is meal coupon? It is Rs 2200 per month -
a) do we have to submit proof in this case?
b) any burden on company in they allow food allowance
c) staff can submit bills of any restaurant and if he or she submit one bill of Rs 2200 is that okay?
5) Mobile Phone and Internet Bill Reimbursement:Rs 500 for mobile and Rs 1,500 for internet expense
Bills required in this? If staff using internet on mobile for office use is that fine they can submit mobile internet payment receipt?
6) Uniform Allowance:Amount up to Rs 24,000 per annum is tax free
We allow formal dress but not same uniform for all so can they submit bills of formal dress?
7) Children Education Allowance: Rs.100 per month per Child
a) so we can claim for 2 children right?
b) what type of document require in this?
c) it is different from 80 c i.e. tuition fees?
8). Newspaper/Journal Allowance: Amount up to Rs 12,000 per annum is tax free against submission of bills
a) At home we are taking news paper and magazine is it valid to consider that bill in tax exemption?
9) Gadgets for Personal & Professional Use: only 10% of the cost of gadget is considered as perk
a) So do govt allow personal use of gadget in tax exemption?
10) Personal Car Maintenance Allowance: Your company can only reimburse Rs 1,800 per month for car less than 1600 CC (Rs 2,400 per month for bigger cars) along with Rs 900 per month for driver salary as tax free allowance.
a) so if employee submit maintenance bill of car and fuel bill then they will get tax exemption right?
11) Leave Travel Allowance (LTA): LTA can be claimed once in two years.Train ticket - 24k and Flight ticket - 60k correct?
12) Books and Periodicals? Can I please have details?
13) Entertainment Allowance - Can I please have details?
14) Can Company Include all above allowance in gross salary ?
Looking for great reply. Thanks in advance.
Regards,
Jackin
I have search lot of forums but somewhere half information and somewhere information not clear, so i am really looking for good reply in detail which will helpful to lots of employee and company. So my sincere request to experts please reply to this query very seriously.
I am looking for tax free salary component for Financial Year 16-17 :- ( I am sharing you what I know )
1) HRA - I am aware and I am submitting rent agreement and rent receipt for this. No limit of exemption right?
2) Transport Allowance -Rs 1600 per month and no document require.
3) Medical Reimbursement - Rs 1250 per month - Proofs required
4) what is meal coupon? It is Rs 2200 per month -
a) do we have to submit proof in this case?
b) any burden on company in they allow food allowance
c) staff can submit bills of any restaurant and if he or she submit one bill of Rs 2200 is that okay?
5) Mobile Phone and Internet Bill Reimbursement:Rs 500 for mobile and Rs 1,500 for internet expense
Bills required in this? If staff using internet on mobile for office use is that fine they can submit mobile internet payment receipt?
6) Uniform Allowance:Amount up to Rs 24,000 per annum is tax free
We allow formal dress but not same uniform for all so can they submit bills of formal dress?
7) Children Education Allowance: Rs.100 per month per Child
a) so we can claim for 2 children right?
b) what type of document require in this?
c) it is different from 80 c i.e. tuition fees?
8). Newspaper/Journal Allowance: Amount up to Rs 12,000 per annum is tax free against submission of bills
a) At home we are taking news paper and magazine is it valid to consider that bill in tax exemption?
9) Gadgets for Personal & Professional Use: only 10% of the cost of gadget is considered as perk
a) So do govt allow personal use of gadget in tax exemption?
10) Personal Car Maintenance Allowance: Your company can only reimburse Rs 1,800 per month for car less than 1600 CC (Rs 2,400 per month for bigger cars) along with Rs 900 per month for driver salary as tax free allowance.
a) so if employee submit maintenance bill of car and fuel bill then they will get tax exemption right?
11) Leave Travel Allowance (LTA): LTA can be claimed once in two years.Train ticket - 24k and Flight ticket - 60k correct?
12) Books and Periodicals? Can I please have details?
13) Entertainment Allowance - Can I please have details?
14) Can Company Include all above allowance in gross salary ?
Looking for great reply. Thanks in advance.
Regards,
Jackin
07 April 2016
You need to go one by one so that there will not be any confusion in your mind.
Basically try to keep it in your mind that there is no any MODEL answer to your query.
01. HRA : Please tell me why do you feel that there is no LIMIT for exemption? (For the time being forget those other conditions.....my question to you is how can you say NO limit of exemption??????? The person can NOT pay rent more than his/her salary...... say for example salary is 10 lakh.... The person can NOT pay rent more than 10 lakh... isnt it?) Please express your views why you think that there is NO limit for HRA.) Then we will go one by one ok?
Basically try to keep it in your mind that there is no any MODEL answer to your query.
01. HRA : Please tell me why do you feel that there is no LIMIT for exemption? (For the time being forget those other conditions.....my question to you is how can you say NO limit of exemption??????? The person can NOT pay rent more than his/her salary...... say for example salary is 10 lakh.... The person can NOT pay rent more than 10 lakh... isnt it?) Please express your views why you think that there is NO limit for HRA.) Then we will go one by one ok?
07 April 2016
HRA will calculate u/s 10(13A) which is maximum upto HRA received
08 April 2016
@Amol Is this a way you have to reply to a person who is raising a query? If I have mention some.thing wrong you can correct me. I am ready to accept mistake. You can reply me in following way for HRA -
Exemption of HRA is a minimum of these three.
Actual HRA received.
Rent paid less 10% of salary.
40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi). In this case, salary is basic plus dearness allowance (basic+DA).
Still I will not be angry but again request you to please reply for my other queries. I will be thankful to you.
Exemption of HRA is a minimum of these three.
Actual HRA received.
Rent paid less 10% of salary.
40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi). In this case, salary is basic plus dearness allowance (basic+DA).
Still I will not be angry but again request you to please reply for my other queries. I will be thankful to you.
08 April 2016
Sorry Query is still open, in my last msg by mistake it was clicked "Resolved"
09 April 2016
02. Transport Allowance. : The document as such is NOT required from employee's side. Employer needs to confirm that it is giving transport allowance to employee.
(There is increasing number of instances, especially with those companies which provide CAB facility to its employees. The question is if the transport allowance given to these employees over and above the CAB facility is exempt. Although there is no any RESTRICTIVE provision in the Income Tax Act to make such allowance taxable, the decision needs to be taken by the respective employer on the basis of their respective Company Philosophy.) Your views please.
(There is increasing number of instances, especially with those companies which provide CAB facility to its employees. The question is if the transport allowance given to these employees over and above the CAB facility is exempt. Although there is no any RESTRICTIVE provision in the Income Tax Act to make such allowance taxable, the decision needs to be taken by the respective employer on the basis of their respective Company Philosophy.) Your views please.
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11 April 2016
@Amol thanks for your reply. Still looking for more answers.
11 April 2016
No. 7 Children allowances given by company is exempted as u/s 10(14) that max.100 per children per month and you can claim deduction for 2 children. yes you have to claim payment basis. company will give deduction on the basis of allowances and maximum deduction will be on expenditure done during the year. this deduction is not under 80C it is in 10(14).
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11 April 2016
03. Medical Reimbursement : This is on ANNUAL basis. INR 15,000 per year. No need to break it up on monthly basis. In most of the companies, employer seeks the DECLARATION from the employees that the amount of at least 15,000 is spent by the respective employee on medical expenses. There is NO need per se to get the proof of spending. But now a days, a growing tendency on our part is that we like to put ourselves into the shoes of others rather than our own. So to play EXTRA safe, employers do ask for actual bills of medical expenditure.
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12 April 2016
@Murtaza but what type of document should I ask them for education allowance?
@all looking for more answers.
@all looking for more answers.
12 April 2016
04. Meal coupon.: Free Food
The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof in either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
For a general reading on various points, please refer
http://www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007059.htm
The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof in either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
For a general reading on various points, please refer
http://www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007059.htm
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