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BASIC SALARY
Dearness Allowance (D.A.)
Commission
Bonus
Gratuity
Leave Salary Encashment
Pension
Retrenchment Compensation
VRS
Other Receipts in lieu of Salary
Allowances
Perquisites
MOTI THIRUMALA RAJU
Gross Salary[As per defination u/s17(1)]Basic Salary+Taxable portion of gratuity,pension,LTC,etc+Taxable portion of allowances+Taxable portion of perquisites+Profit in lieu of Salary+Taxable portion of contribution to RPF made by
employerGROSS SALARYLess:Deduction u/s 1616(ii) Entertaintment Allowance16(iii) Professional TaxINCOME FROM SALARY
MOTI THIRUMALA RAJU
Entertainment allowanceThis allowance is applicable to central & state
government employeesDeduction: Lease of following1.50002. 20% of Basic Salary3.Amount Actually received
.Professional Tax[Sec 16(ii)]Deduction is amount actually paid during the
previous year
MOTI THIRUMALA RAJU
Special Allowance( Rule 2BB)
Sec 10(14)(i) Official: The amount given to meet expenses related to employment. The exemption is- Amt of actual expenditure or amount of allowance, whichever is less.
These allowances are Traveling allowance, Daily allowance, Helper allowance, Uniform allowance
MOTI THIRUMALA RAJU
Particular Exemption
Children Education Allowance Rs.100 p.m per child (max 2 children)
Children Hostel Allowance Rs.300 p.m per child (max 2 children)
Allowance for transport sector employees 70% of amount received or Rs.6000pm whichever is less
Transport/Conveyance allowance( for journey between place of duty & residence
Rs.800 pm for general or Rs.1600p.m for handicapped
Mining allowance 800p.m
Tribal Area Allowance 200p.m
Compensatory field re allowance 2600p.m
Compensatory Modified Field Area allowance
1000p.m
Counter insurgency allowance 3900p.m
Underground Allowance 800p.m
MOTI THIRUMALA RAJU
House Rent Allowance
Minimum Of Following Shall Be Exempted u/s 10(13A):1) Actual Received2) 50% or 40% of Salary3) Rent Paid- 10% of Salary
NOTE:1) 50% When house is situated in a metro city, else 40%.2) Salary = Basic+D.A.(if terms so provide)+ turnover based commissionMOTI THIRUMALA RAJU
Any allowance or perquisites paid or allowed outside India by the government to a citizen of India, for rendering services outside India, is fully exempt from tax
Allowances to high court judges u/s 22A(2) of the high court judges Act,1954
Sumptuary allowance given to High court & Supreme court judges
Allowance received by an employer of UNO from hid employer
MOTI THIRUMALA RAJU
GRATUITY sec 10(10)
During Continuation Of Service
On Termination Of Service
Fully Taxable
Fully Exempt
Covered Under PGA
Minimum Of Following Exempted1) Actual Gratuity Received2) Rs. 3,50,000/-3)1/2 month Avg Salary X Completed Year of Service
Minimum Of Following Exempted1) Actual Gratuity Received2) Rs. 3,50,000/-3) P.M. Salary X Completed Year of Service X 15/26
If Non Government Employee
NO
YESYES
NO
Note:* PGA= PAYMENT OF GRATUITY ACT*SALARY= BASIC+D.A.*COMPLETED YEAR includes every completed year & period in excess of 6 months shall be treated as a year
Note:*AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10*COMPLETED YEAR ignores ANYFRACTION
MOTI THIRUMALA RAJU
LEAVE SALARY ENCASHMENT sec10(10AA)
During Continuation Of Service
On Termination Of Service
Fully Taxable
Fully Exempt
Minimum Of Following Exempted1) Actual leave encashment Received2) Rs. 3,00,000/-3) 10 Months Average Salary4) 30 Days Average Salary For Every Completed Year Of Service, Subject To Leaved Availed During The Tenure Of Service.
If Non Government
Employee
NO
YES
Note:*AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10 [LAST 10 MONTHS EXACT FROM THE DATE OF RETIREMENT.]*COMPLETED YEAR ignores ANY FRACTION
MOTI THIRUMALA RAJU
PENSION sec10(10A)
UNCOMMUTED PENSION
FULLY TAXABLE
FULLY EXEMPT
ASSESSEE RECEIVED GRATUITY
ONE HALF OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED
ONE THIRD OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED
IF NON GOVERNMENT EMPLOYEE
NO
YESYES
NO
COMMUTED PENSION
MOTI THIRUMALA RAJU
RETRENCHMENT COMPENSATION sec10(10B)
In any other CaseIf Compensation Paid Under Any Scheme
Approved By The Central Government.
Nothing Shall Be Taxable.
MINIMUM OF FOLLOWING SHALL BE EXEMPTEDa) ACTUAL AMOUNT RECEIVEDb) Rs.5,00,000/-c) ANY AMOUNT CALCULATED UNDER INDUSTRIAL DISPUTE ACT,1947 i.e Average of last 3 months8* a5/26 * No of completed years of service and part there in excess of 6 months
MOTI THIRUMALA RAJU
VOLUNTARY RETIREMENT
In any other CaseRECEIVED FROM SPECIFIED EMPLOYERS
MINIMUM OF FOLLOWING SHALL BE EXEMPTEDa) ACTUAL AMOUNT RECEIVED AS PER V.R.S. GUIDELINES* or b)Rs.5,00,000/-
FULLY TAXABLE
GUIDELINES:-a)COMPLETED AGE OF 40 YEARS OR COMPLETED 10 YEARS OF SERVICE (IT IS NOT APPLICABLE ON PUBLIC SECTOR COMPANY)b)THIS IS FRAMED TO REDUCE THE STRENGHT OF EMPLOYEES.c)THE VACANCY CAUSED BY VRS IS NOT TO BE FILLED UP d)THE RETIRING EMPLOYEE IS NOT EMPLOYED IN ANOTHER COMPANY BELONGING TO THE SAME MANAGEMENTe)* THE AMOUNT OF COMPENSATION DOES NOT EXCEED = 3 MONTHS SALARY FOR EACH COMPLETED YEAR OF SERVICE or SALARY AT THE TIME OF RETIREMENT x BALANCE MONTHS OF SERVICE LEFT
# SPECIFIED EMPLOYERS :-a)COMPANY b)LOCAL AUTHORITY c)CO-OPERATIVE SOCIETY d)ANY AUTHORITY ESTABLISHED UNDER CENTRAL/STATE/PROVINCIAL ACTe)SPECIFIED UNIVERSITY f)INDIAN INSTITUTE OF TECHNOLOGY(IIT)g)STATE GOVERNMENT h)CENTRAL GOVERNMENT i)NOTIFIED INSTITUTIONj)NOTIFIED INSTITUTION OF MANAGEMENT (IIM)
MOTI THIRUMALA RAJU
Type of fund
Employer Contribution principal)
Employer’s contribution interest)
Employee's Contribution principal)
Employees Contribution interest)
Amount withdrawn on retirement
SPF Exempt Exempt Deduction u/s 80 c
Exempt Exempt u/s 10(11)
RPF Exempt up to 12% of salary
Exempt up to 9.5%
Deduction us 80 c Exempt up to 9.5%
Exempt subject to condition. If not then RPF treated as URPF
URPF Exempt Exempt No Deduction us 80 c
Exempt Employees contribution exempt. Interest on employee taxable under IOS. Employer contri taxable as salary
PPF NA NA Deduction us 80 c Exempt Exempt
u/s 10(11)
Approved Super annuation fund
Exempt Exempt Deduction us 80 c Exempt Exempt
u/s 10(3)
Approved gratuity fund
Exempt Exempt NA NA Exempt
u/s 10(10)MOTI THIRUMALA RAJU