G.K.'s way to Learn - Income from Salary

Specific Allowances [Sec. 10 (14)]

Exempt :

Actual recieved

or

Spent for purpose of official duty

whichever is less

allowances under this section :

- Travelling

- Daily Allowance

- Conveyance

- Helper

- Academic

- Uniform

Limited Allowances

Allowances                                         Exemption

1. Children Education                           actual recieved



                                                         or



                                                         100 per moth per child (Max. 2)

                                                          whichever is less  

2. Hostel Expenditure                          actual recieved



                                                          or



                                                          300 p.m. per child (Max. 2)

                                                          whichever is less

3. Tribal / Scheduled / Agency Area    actual recieved or200 p.m.                                                       

                                                          whichever is less  

4. Hilly area                                        varies frm300 to7000 p.m.

5. Border / remote / diturbed area       varies frm200 to1300 p.m.

6. Compensatary field area                   Rs. 2600 p.m.

7. Counter Insurgency                          Rs. 3900 p.m.

8. Transport                                        Rs. 800 p.m.

     Office =====> Residence

     Residence =====> Office

9. Blind / Handicapt                            Rs. 1600 p.m.

10. Undergroun                                    Rs. 800 p.m.

11. Highly active filed area                   Rs. 4200 p.m.

12. island                                             Rs. 3250 p.m.

Allowances to transport employee

70 % of allowance 

or 

Rs. 6000 p.m.

whichever is less

reallly  nicelyyyyy explaineeeed ....keep it uppppppp

Entertainment Allowance - its not Exemption.....Its Deduction [Sec 16 (ii)]

- only for govt. employee

- exempt minimum of the following :

   - actual recieved

   - 20 % of salary

   - Rs. 5000

Keep it Gourav, my ipcc is in may11 and i am going to study salary from this thread only.

After this, cover the other heads of income too :) (not necessarily today!)

Thanks

Allowances exempt to certain purpose :

- allowed to govt. employee (citizen of India) renderring services outside India ....Sec 10 (7)

- allowed to High Court Judges

- Sumptuary allowance to High Court & Supreem Court Judges

- allowances recieved by an employee of UNO from his employer

@ Kushal ........thanks yar

Fully Taxable Allowances

- Dearness Alowance

- City Compensatory Allowance

- Medical Allowance

- Lunch / Tiffin Allowance

- Overtime

- Servant

- Warden

- Non - Practising

- Family

PERQUISITES

- taxable in hands of all catagories of emploees

- when employee belongs to a specified group

- Specified Securities Transferred

- Contribution by employer to Superannuation Fund

- Tax Free Perquisites

All Catagories of employees

1. Rent Free Accommodation (RFA)

2. Concession in matter of rent

3. Monetory obligation discharge by employer

4. Contribution by employee to Superannuation Fund

5. Value of any other Fringe Benefit / annuity 

Good job..

keep doing..

hi its really best explaination

hi...still waiting for ur nxt explanation on salary....

u r doing a very gud deed!!!!

@ Hiral, Mukesh...Thanks...

@ Payal...thanks yar...yes i will update it very soon..and am trying to finish off all the income tax notes in this week..so keep ur eyes on these threads..

RFA (Rent free acomodation)

- Govt. Employee

   - Unfurnished

   - Furnished

- Non Govt. Employee

   - Owned by employer

       - Unfurnished

       - Furnished

   - taken on rent by employer

       - Unfurnished

       - Furnished