Subu Salary Final Edited

8/13/2019 Subu Salary Final Edited

1/14

SUBRAMANIAM C.

INCOME TAX

Computation

Basic Salary /wages

Advance / Arrears Sala

Annuity or Pension

Fees, Commission

Bonus.

Excess contribution to

Excess interest receive

Allowances:-

Dearness Allowance

Entertainment Allowan

Fixed Medical Allowan

City Compensatory All

Servant Allowance

Commission as a perce

House Rent Allowance

Children Education All

Children Hostel Allowa

Perquisites:

Rent free accommodati

Motor Car***5

Medical Benefit***6

Educational Facilities*

Free meals during offic

Service of sweeper, gar

provided by employer *

Gas, electricity or wate

Use of movable assets:

movable assets sold by

Interest free loan:***1

Profits in lieu of sa

Amount received aGratuity***14

Commuted pension***

leave salary***16

VRS Compensation***

Retrenchment Compen

Less:- Deductions

Enterta

Employ

H.O.D

Income from Salary

of taxable income under the head s

Particulars

ry

.P.F. by employer over 12% of salary

from R.P.F. over 9.5% rate of interest

e

ce

wance

tage on turnover

***1

wance***2

nce***3

n***4

**7

e hours ***8

dener or watchman or personal attendant

**9

rprovided by employer***10

***11

employer:***12

3

ary:-

t retirement

5

7

ation***18

Gross income from salar

nment Allowance(Gov t.emp)***19

ent tax***20

Taxable income from Salar

OMMERCE DEPT.

STUDY NOTES

lary

Amount


2/14

SUBRAMANIAM C.

INCOME TAX

Scale or grade of pay.Salary grademe

of appointment and during the entire ser

maximum salary after which there will b

.Due dates of salaryFirst day of next monthMarch 2010

Last day of same month April 2010

D.P.Dearness paysalways taken

D.A.Dearness allowance(if) it en

is taken or enters to recognized providen

ALLOWANCESFully Taxable

(i) Entertainment Allowance

(ii) Dearness Allowance

(iii) Overtime Allowance

(iv) Fixed Medical Allowance

(v) City Compensatory Allowance

(vi) Interim Allowance (to meet inc

cost of living in cities)

(vii) Servant Allowance

(viii) Project Allowance

(ix) Tiffin/Lunch/Dinner Allowance

(x) Any other cash allowance

(xi) Warden Allowance

(xii) Non-practicing Allowance

(xiii) Commission as a percentage o

turnover

(xiv) Fees

(xv) Family Allowance

(xvi) Leave encashment during serv

H.O.D

ans that at which starting salary of any empl

ice. Period, what will be his increment per

e no increment. For Example: - 2000-500-4

Feb2011. (govt and semi-govt employees)

March2011. (Non-Govt employees)

it is always under the terms of employment

ters to retirement benefits or under the terms

t fund. For salary definition

Allowances

Partly Taxable

(i) House Rent

Allowance [u/s 10(13A)]

(i) Allo

Govern

India.

(ii) Special Allowances

[u/s 10(14)]

(ii) Sum

to High

Judges

(iii) Allo

United

(iv) Co

received

eased

n

ice

OMMERCE DEPT.

STUDY NOTES

yee is been fixed at the time

ear and what will be his

00-200-5000

of employment then itself it

Fully Exempt

ance granted to

ent employees outside

tuary allowance granted

ourt or Supreme Court

wance paid by the

ations Organization.

pensatory Allowance

by a judge


3/14

SUBRAMANIAM C.

INCOME TAX

Name of

Allowances Sec. Rule

HRA 10(13A) 2A 1

Traveling 10(14)1

Conveyance 10(14)1

Daily 10(14)1

Helper 10(14)1

Research 10(14) 1

Uniform 10(14)1

For Transport

Employee

10(14) 2BB1

Children

Education

10(14) 2BB

c

HostelExpenditure

10(14) 2BBc

Transport 10(14) 2BB

e

Special

Compensatory 10(14) 2BB

Border Area 10(14) 2BB

Tribal/Scheduled

Area 10(14) 2BB

Compensatory

Field Area 10(14) 2BBCompensatory

Modified Area 10(14) 2BB

Counter

Insurgency 10(14) 2BB

Under Ground 10(14) 2BB

High Altitude

Area

10(14) 2BB

Highly Active

Field Area

10(14) 2BB

Island Duty 10(14) 2BB

H.O.D

Allowances:-

Provisions

.50% of Salary at Bombay, Delhi, Calcutta,

hennai & 40% of Salary for other cities.

. Actual received

. Rent paid Minus 10% of Salary.

. The amount of allowance received

. The amt. spent for that purpose











. 70 % of allowance received

. 6000 per month

s. 100 per month per child up to max. of two

hildren.

s. 300 per month per child up to max. of twohildren.

s. 800 per month & 1600 per month in case of a

mployee, who is blind, orthopaedically handicap

xemption varies from 300 p/m to 7000 p/m.

xemption varies from 200 p/m to 1300 p/m.

s. 200 p/m in case of prescribed tribal area.

xemption is limited to Rs. 2600 p/m in some cas



xemption is limited to Rs. 800 p/m.

xemption is up to Rs. 1060 p/m or 1600 p/m

epending upon height of altitude.

xemption is up to Rs. 4200 p/m.

xemption is up to Rs. 3250 p/m.

OMMERCE DEPT.

STUDY NOTES

Exempted Amt.

Whichever is less

Whichever is less

Whichever is less

Whichever is less

Whichever is less

Whichever is less

Whichever is less

Whichever is less

ped.

es.

es.

es.


4/14

SUBRAMANIAM C.

INCOME TAX

It is a benefit or amenities grante

Tax-free Perquisites

1.Free medical facilities as given u/s

2.Free refreshment during working h3.Free recreational facilities

4.Provition of telephone whether basi

5.Free meals provided in remote area

installation are fully exempted.

6.Free education, training or refreshe

employees

7.Goods sold at concessional rates.

8.Free ration received by members o

forces.

10.Perquisites allowed by Govt. to its

posted abroad.

11.Rent free house given to an office

parliament, a union minister, & leade

opposition in parliament

12.Conveyance facilities to judges of

court and high court

13.Free conveyance provided by emp

employees for going to or coming fro

employment.14.Any amount contributed by emplo

pension or deferred annuity scheme.

15.Employers contribution to staff gr

scheme

16.Computers, laptops given to an e

official use

17.Transfer of a moveable asset more

years old without consideration

18.Accident insurance premium paid

for his own benefits

19Interest free loan or loan at conces

interest taken by employee from emp

amount of loan does not exceed Rs 2

is taken for medical treatment

20.value of any share or debentures g

cost or at concessional rate to employ

stock option scheme approved by the

21.Free ticket given by railways & ai

employer to their employees.

H.O.D

Perquisites OR Perkd to employee by employer to motivate to w

Perquisites taxable in all c

17(2)

urs

c or cellular

or at offshore

course for

armed

employees

of

r of

supreme

loyer to

m place of

yer towards

up insurance

ployee for

than 10

by employer

ional rate of

loyer if

,000 or loan

iven free of

ees under

central Govt.

transport

1.Rent free house.

2.Concessional rent house3.Obligation of employment

employer

(a). Amounts paid by emplo

Club bill.

Gas and electricity bill.

Education bill of children.

Income tax of employee.

Professional tax of employe

Salary of servants employed

employee.

Car or other conveyance ow

By employee, used for priva

purposes and expenses are

by employer.

Any other bill for personal

expenses issued in the name

employee paid by employer.

4.Any other fringe benefits

by employer to employee.(a) Free meals if provided d

working hours

( (c) Club facility actual

expenditure is taxable

(d)Credit card & add on card

actual fee is taxable.

(e)Interest free loans or loan

concessional rate of interest

more than Rs.20, 000 if not

medical treatment difference

between prescribed rate & r

charged is taxable.

(f) Use of moveable assets

except computers laptops.

(g) Transfer of movable asse

(h) Expense on tours & trave

5.Any amount of life insuran

premium paid by employer

during the previous years.

OMMERCE DEPT.

STUDY NOTES

rk.

ases Taxable specified

employees only

by

er.

.

by

ed

e

et

of

iven

ring

at

if

for

te

ts.

ls

ce

1.Car owned by

employer but usedby employee both

for personal and

official purposes.

2.Gas & electricity

facility.

3.Education facility

for children.

4.Free transport

allowed by

employer engaged

in transport

business

5.Service of

domestic servant

provided by

employer

6.Any other bill for

personal expenses

of employee paidby employer.


5/14

SUBRAMANIAM C.

INCOME TAX

Profits in lieu of Salary (S. 17(3)),a. Any compensation from emplo

employment.

b. Any receipt from employer/formpension, retrenchment compens

not consisting of contributions b

c. Any sum received under a keypolicy.

d. Any sum received before his joiDeductions

Entertainment Allowance(Gov t. Employment tax

IMPORTANTPOINTS1. Receipts from a person other tha

University Remuneration Examiner ship fee if received Family pension received by Salary received by M.P, M.L Salary received by a partner

2. Salary and pension received by e3. Any amount received after cessa4. Salary accrues where a service is

accrues in India.5. In case salary is foregone under l6. Any salary received in lieu of no7. In this case salary is received aft

salary:

Own contribution to provide Tax deducted at source Repayment of loan etc LIC premium, if deducted fr Group insurance scheme Rent of house provided by e

8. Nothing is taxable if loans in agspecified disease likes neurologi

specified diseases.

9. Leave encashment received bytaxable

10.Un-commuted pensions i.e. the pwhether government or non- gov

11.Commuted pension: Exempted istatutory corporation.

12.If an employee has paid P. Tax oallowed as deduction.

H.O.D

hich is taxable as salary, It includes

er or former employer on termination or

er employer or from provident/other fund (

tion, house rent allowance, provident fund

assessee/interest on such contributions.

an insurance policy including the sum alloc

ing any employment or after cessation of his

mp)

employer are taxable under other sources.

by a college lecturer

embers of family of deceased employee

A., M.L.C

rom his firm

mployees of UNO is fully exempted

ion of employment is also taxable under this

rendered, but for Govt employees posted ab

egal obligation it is exempted but if foregon

tice is also fully taxable under this head.

r deduction of following items, these are ad

t fund

m salary

ployer

regate do not exceed Rs 20000 and loan is p

cal diseases, Cancer, AIDS, Chronic renal fa

ovt. employee and non-Govt. employee duri

eriodical pension: It is fully taxable in the ha

ernment

the case of Government employees or empl

f more than one yr in a particular P.Y. then ,

OMMERCE DEPT.

STUDY NOTES

modification of the terms of

ther than gratuity, commuted

r such other funds) to extent

ted by way of bonus on such

employment.

hese are

head.

oad salary is deemed,

voluntarily, it is taxable

ed back to get full / gross

ovided for a treatment of

ilure, Hemophilia are the

g the service period is 100%

nds of all employees,

oyees of local authorities or

ntire P. Tax so paid is


6/14

SUBRAMANIAM C.

INCOME TAX

1. HOUSE RENT ALLOWANCE

The Employees of Metropolis

Mumbai, Chennai, Kol

2. CHILDREN EDUCATION ALLRs. 100 per month per child up to

3. CHILDREN HOSTEL ALLOWARs. 300 per month per child up to

PERQUISITES4. RENT FREE ACCOMODATION

GOVT.

As per govt.

rules (licenses

fees)

less

Rent recovered

from employee

Owned by e

As per

Population >25

Population >10

Population up t

**% on amount of salary (less) Re

If the furniture (TV, washing mach

charges if taken on rent shall be ad

** Maintenance charge or repair o

Salary means:basic salary+(DA)

portion of all allowance + monetar

The least of following is exempt:

1. HRA received (actual amt re

2. Rent paid - 10 % of salary.

3. 50 % or of salary.

H.O.D

RULES IN DETAIL:-

f Delhi, The Employees

ata

WANCE

ax. of two children.

CE

ax. of two children.

OTHER

ployer Not owned by

employer001 census

Actual rent

or

15% of salary

whichever is low

lakhs 15%**


7/14

SUBRAMANIAM C.

INCOME TAX

5. VALUATION OF MOTOR CAROwned or hired by employer and

Exclusively for

official

purpose1(a)

Exclusively for

purpose1(b

Nil.Taxable if

specifieddocument is

maintained

Running &

Maintenance exactual

+ remuneration

Chauffeur

+ actual Wear &

tear@ 10% p.a o

cost or

hire charges if ca

taken on hire cha

Expenses borne by both employer a

employee

Owned by employee and used

Exclusively

for official

purpose2(i)

Exclusively for p

purpose

Nil.Taxable

if specifieddocument is

maintained

Actual expenditure

incurred by employ(-) amount recovere

from employee

Expenses borne by employer

If expenses borne by employee then

Any other automotive owned by empl

actual expenses reimbursed (-) Rs 900p.

Note:

Using cars from pool of cars owned o

The employee is permitted to use any or

For one car

For more than one car

H.O.D

sed

vt.,

Both official and Pvt

f

r

rges

Running and maintena

Employer1(c )(i)

Up to 1.6 ltrs Rs 1800p.m + for

chauffeur Rs 900 p.m (-) amount

recovered from employee shall

be taxable

U

fo

e

Exceeding 1.6 ltrs Rs 2400p.m +

for drivers Rs 900 p.m (-)

amount recovered fromemployee shall be taxable

90

pd

vt.

Both Official and Pvt.

rd

Running and maintena

Employer

Actual expenditure for official and

personal (-) Rs 1800 p.m + Rs 900

p.m for driver where the cubic

capacity does not exceed 1.6 ltrs

Actual expenditure for official and

personal (-) Rs 2400 p.m + Rs 900

p.m for driver where the cubic

capacity exceeds 1.6 ltrs

no tax is chargeable

yee, used partially for work and expenses re

.

r hired by Employer :

all cars for both official and personal use :

Valued as per 1(c )(i)

Valued as per 1(b) as if fully u

purpose

OMMERCE DEPT.

STUDY NOTES

. Purpose

ce borne by

employee1(c)(ii)

p to 1.6 ltrs Rs 600p.m +

chauffeur Rs 900 p.m (-)

amount recovered from

mployee shall be taxable

Exceeding 1.6 ltrs Rs

0p.m + for drivers Rs 900

.m (-) amount recoveredfrom employee shall be

taxable

urpose2(ii)

ce borne by

employee

No tax

imbursed by employer:

sed for personal


8/14

SUBRAMANIAM C.

INCOME TAX

6. PERQUISITE IN RESPECT OFHospital (including clinic,

dispensary or nursing home)

1. Maintain by employer

2. Maintain by-

- Central / State Govt.

- Local Authority

- Any other person but approved

by the Govt. for the treatment of

its employees

3. Approved by the Chief

Commissioner having regard to

the prescribed guidelines

4. Health insurance policy (I.e.

group medical insurance premium

for employees or medical

insurance premium for employees

& family members)

5. Maintained by any other person

(for example a private clinic)

7. VALUATION OF EDUCATIONFacility provided

to Provided in t

the employer

Children Cost of such e

school (an exep.m. per child

Other house hold

member

Cost of such e

school

Perquisite not chargeable t

1. Medical treatment of employee or

of family of such employee outside I

2. Cost on travel of the employee/any

his family & one attendant who acco

patient in connection with treatment

3. Cost of stay abroad of the employe

member of the family for medical tre

cost of stay of one attendant who acc

patient in connection with such treat

H.O.D

EDICAL FACILITIES:

Medical Facilities in India

Nature of Medical

Facilities made

available to employees

their family members

Expenditure

Any Incurred by

employer

Any Incurred or

reimbursed by

employer

For treatment of

rescribed diseases given

in rule 3A (2)

Incurred or

reimbursed by

employer

None Medical insuranc

premium paid o

reimbursed by th

employer

Any Incurred or

reimbursed by

employer

L FACILITIES

Value of perquisite

e school owned by Provided in any othe

ducation in similar

mption of Rs. 1000is available)

Cost of such educatio

exemption of Rs. 100per child is available)

ducation in similar Cost of such educatio

incurred

edical facilities outside India

tax Condition to

any member

dia

Expenditure shall be exclude

the extent permitted by the R

member of

panies the

utside India


the case of an employee who

computed before including th

traveling, doesn't exceed 200

e or any

tment &

mpanies the

ent.


to the extent permitted by the

OMMERCE DEPT.

STUDY NOTES

Is it chargeable to

tax

Not Chargeable to tax

(No MonetaryCeiling)


(No Monetary

Ceiling)


(No Monetary

Ceiling)

e

e


(No Monetary

Ceiling)


up to 15000 in

aggregate per A.Y.

Taxable in the

hand ofr school

(an

p.m.

Specified

employee

Specified

employee

e satisfied

from perquisite only to

I

from perquisite only in

e gross total income, as

erein the expenditure on

00

from the perquisite only

RBI


9/14

SUBRAMANIAM C.

INCOME TAX

8. FREE MEALS DURING OFFICActual cost to the employer in exces

Less:amount recovered from the em

9. VALUATION OF PROVISION OServant

appointed by

Servants

salary paid b

Employee Employee

Employee Employer

Employer Employer

Employer Employee

10.VALUATION OF SUPPLY OF GFacility in the name

of

Provide

source

Employee Manufa

the emp

Employer Manufa

the emp

11.PERQUISITE IN RESPECT OFMode of valuation

Step1. Find out cost to the empl

Step 2Less:Amt. recovered fro

the employeeTaxable value (Step 1 - Step 2)

a. Electronic gadgets include compmicrowave ovens, hot plates, mi

b. Transfer of Assets, which are 1012.PERQUISITE IN RESPECT OF

It is taxable in the hands of empl

by the amount, if any, paid or recovered

Rate of normal wear & tear is as follows1) Electronic items/computers

2) Motor Car

3) Any other

H.O.D

HOURS

of Rs.50 per meal

ployee

F DOMESTIC SERVANTS

Value of perquisite

Nil

Actual cost incurred by the employer

on the servant

Actual cost incurred by the employer

on the servant

Nil

S, ELECTRICITY OR WATER SUPPL

Value of perquisite

d from own Provided from outside

turing cost to

oyer

Amount paid to the suppl

turing cost to

oyer

Amount paid to the suppl

SE OF MOVABLE ASSETS:

Computer/

Laptop or

car

Any o

Owned by employer

yer Nil 10% p.a. of actual cost

Nil Recovery from the

employeeNil Balancing amount

uter, digital diaries and printers, but exclude

ers, ovens, etc.

years old, shall not attract tax liability.

OVABLE ASSETS SOLD BY EMPLOY

oyees whether specified or not. The amount

from the employee being the consideration f

:50% by reducing balance method

20% by reducing balance method

10% of the cost.

OMMERCE DEPT.

STUDY NOTES

axable in the hand of

ot applicable

ll employees

pecified employees

ot applicable

ED BY EMPLOYER

Taxable in the

hand of

ier All employees

ier Specified

employees

her assets

Taken on hire by

employer

Amt. of rent paid or

payable

Recovery from the

employeeBalancing amount

ashing machines,

ER:

o calculated shall be reduced

r such transfer.


10/14

SUBRAMANIAM C.

INCOME TAX

13.PERQUISITE IN RESPECT OF IStep 1. Find out "Maximum

Step 2. R.O.I. charged by SB

Step 3. Step 1 X Step 2.

Step 4. Step 3Less:Interest

Step 5. Step 3 - Step 4. Bala

Note:Rate of interest has been taking as

SBI LENDING RATES For 2010-11

Categories of Loan Parti

Housing Loan Up to

Abov

Abov

Abov

Car loan, for new car Up to

Up to

Abov

Abov

Two Wheeler Loan

Education Loan Loan

Loan

Personal Loan

14.DEATH CUM RETIREMENT GGratuity is the amt, which is pai

Govt. Employee

The least of following is exempt:

a. 15/26 x last salary drawn x Nocompleted year of service and

excess of 6 months is consider

b. 3,50,000 / 1000000

c. Actual amt received.

Meaning of Salary = BP +DP/ DA

-Fully Exempt

H.O.D

Covered under payment of

gratuity act 1972No

pa

NTEREST FREE LOAN:

o/s monthly balance"

I as on the 1st day of the relevant previous y

actually recovered from employee

ce amt. is taxable.

per SBI lending rate chart

Assessment Year are as follows:-

ulars As

5 Years.

e 5 Years but up to 10 years



3 years (Rs. 7.5 lakhs and above)

3 years (below Rs. 7.5 lakhs)



amount up to Rs. 4 lakhs

> Rs. 4 lakhs


11/14

SUBRAMANIAM C.

INCOME TAX

15.COMPUTATION OF PENSION (Government Employees.

16.LEAVE SALARY 10 (10AA)Leave salary is given to the employer

Govt. employees

17.VRS COMPENSATIONParticulars

Amount received as VRS Compensation

Less: Exemption u/s 10(10C):

Least of the followings:

(i) Actual amount received(ii) Maximum Limit(iii) The highest of the following:

Last drawn salary 3No.

Last drawn salaryBalance

Taxable Value

18.RETRENCHMENT COMPENSAParticulars

Amount received as Retrenchment Com

Less: Exemption u/s 10(10B):


(i) Actual amount receive(ii) Amount determined under t(iii) Maximum Limit

Taxable Value

Receive

Exempted

1/3rd

of th

Fully exempt

Fully exempt

H.O.D

IN LUMP SUM) SEC 10 (10 A)

Other employees

at the time of retirement if he had kept some

Non- Govt. empl

Rs

f fully completed years of service

of no. of months of service left.

xx

5,0

TION

Rs

ensation

he Industrial Disputes Act,1947

xx

xx

5,0

Gratuity

The computed value of

normal pension

Not

The comm

The norma


i. Actual amount of Leave encasii. Average salary of the individ

months 10 months

iii. Maximum Limitiv. Leave at credit at the rate of 3

Completed year of service as

OMMERCE DEPT.

STUDY NOTES

Leave on his credit.

oyees

Rs

xxx

,000

xxx

xxx

xxx

Rs

,000

xxx

xxx

xxx

eceives Gratuity

ted value ofofpension

hment received

al for the past 10

days p.a. for every

alculated in Step 3(ii)


12/14

SUBRAMANIAM C.

INCOME TAX

19.ENTERTAINMENT ALLOWAN

Government Employees.

20.PROFESSIONAL TAX [SEC.16(Ii. Professional tax or tax on emplo

deduction

ii. Such deduction is available onlyiii. If an employer pays professional

as a perquisite and then, allowe

21.MEANING OF SALARY IN DIFRent free house or concession in rent

House rent allowance

contribution to R.P.F

Gratuity (Covered)

(Not Covered)

Entertainment allowance

Determination of salary of Rs.50000

for specified employees

Leave salary

Perquisite in respect of ProvidentParticulars Statuto

PF

Employer contribution Exem

Deduction u/s 80C on

employee's contribution

Availab

Interest credited to PF Exem

Lump sum pymt. At the

time of retirement or

termination of service

Exem

i. Amount receivedii. 1/5 of basic salaryiii. Rs. 5000W.E.LESS

H.O.D

E

Other em

Meaning of salary = Only Basic

II)]

ment paid by an employee, levied under a S

on actual payment

tax on behalf of his employee, then it will fi

as a deduction.

ERENT CASES

Basic Pay + DP/DA (if) + Bonus + Co

+ any other payments in cash. Perquis

BP + DP/ DA (if) + comm on sales

BP + DP/ DA (if) + comm on sales

BP +DP/ DA(If/Not)

BP +DP/ DA(If)+Comm

Only basic pay

Income exceeds Rs.50, 000 after deduc

considering perquisites , in cash then i

BP + DP/ DA (if) + comm of salary

und:

ry Recognized PF

t Exempt upto 12% of salary,

excess of 12% is taxable.

le Available

t Exempt upto 9.5%, excess

of that rate is taxable.

t Exempt in some cases (Note

1), otherwise PF will be

treated as an Unrecognized

fund from the beginning

(Note 2)

Pymt.

employ

exempt

employ

under t

is taxab

Full

OMMERCE DEPT.

STUDY NOTES

ployees

Salary

tate Act shall be allowed as

st be included in the Salary

mission + Tax. Allowances

tes are not taken

tion u/s 16 (without

will be taken)

Unrecognized PF

Exempt

Not available

Exempt

Recd. in respect of

e's own contribution is

from tax, interest on

e's contribution is taxable

he head "IFOS". Balance

le under "Salaries".

y Taxable


13/14

SUBRAMANIAM C.

INCOME TAX

PERQUISITE IN RESPECT OFDifferent situations

1. Journey is performed by Air

2. Journey is performed by Rail

3. Places of origin of journey & desti

are connected by rail & journey is peby any other mode of transport.

4. Places of origin of journey & desti

A. Where a recognised public transp

system exists

B. Where no recognised public trans

systems exist.

IMPACT ON TAXABILITYITEM1 Basic salary, bonus, commission

advance salary

2 Dearness allowance, entertainme

compensatory allowance and oth

3

House rent Allowance

4 Medical allowance

5 Transport allowance to commutioffice

6 Education allowance

7 Uniform allowance

8 Hostel allowance.

9 Entertainment allowance

10 Free Education in employers sch

Own children

Other relatives

11 Payment of fee, education expen

outside

12 Scholarship.

13 Rent free accommodation

14 Concessional rent

15 Free medical facilities or reimbu

Govt hospital or approved hospit

Reimbursement of medical bills

nursing home

16 Treatment outside India

17 Conveyance allowance

H.O.D

EAVE TRAVEL CONCESSION (LTC):

Amount of ex

Amt. of ecenomy class air fare of

shortest route or the amt.spent, w

Amt. of air conditioned first class

route or amount spent, whichever

nation

formed

Amt. of air conditioned first class

route or the amount spent, which

nation are not connected by rail

rt First class or deluxe class fare by

amount spent, whichever is less.

ort Air conditioned first class rail far

if the journey had been performe

actually spent, whichever is less.

OF VARIOUS ITEMSSPECIFIE

EMPLOYE

, interim relief, Arrears, Taxable

nt allowance, city

er taxable allowance

Taxable

Exempt up to

Certain limit

Taxable

ng between residence to Exempt up to 80p.m

Exempt up to

Certain limit

Tax free

Exempt up to

Certain limit

Taxable

ool Excess of 1000

per child taxable

Full amount

ses by employer to Taxable

Tax free

Taxable as per r

Taxable as per r

rsement of medical bills (

al)

of private hospital or

Tax free

Exempt up to 15

Tax free

Exempt up to th

OMMERCE DEPT.

STUDY NOTES

mption

the national carrier by the

hichever is less.

rail fare by the shortest

less.

rail fare by the shortest

ver is less.

the shortest route or the

by the shortest route (as

by rail) or the amount

NON- SPECIFIED

EMPLOYEE

Taxable

Taxable

Exempt up to

Certain limit

Taxable

Exempt up to 800 p.m

Exempt up to

Certain limit

Tax free

Exempt up to

Certain limit

Taxable

.m Tax free

Tax free

Tax free

Tax free

les Taxable as per rules

les Taxable as per rules

00

Tax free

Exempt up to 15000

Tax free

Exempt up to the


14/14

INCOME TAX

To perform the duty

Transfer

For personal purpose

18 Free lunch

19 Refreshment

20 Interest free loan or concessional

20000 (Interest charged by the ededucted)

21 Interest free loan or concessional

22 Telephone facility in the name o

23 Free tea & snacks or refreshmen

24 Free meal facility during the dut

25 Life insurance premium and oth

employer

26 Group insurance, medical insura

premium paid by the employer

27 Personal club bills paid by the e

28 Shares issued at discount

29 Gas, water and electricity bills p

(connections in the name of emp

30 Gas, water and electricity bills p

(connections in the name of emp

31 Free use of computer

32 Transfer of movable assets

33 Training refresher, official tour e

34 Training & Refresher

35 Holiday home facility, personal t

36 Uniform allowance

37 Free conveyance facility to trans

38 Servants provided by employer.

39 Servant appointed by employee

40 Servant allowance.

41 Gifts.

42 Club facility

43 Use of computer.

44 Gift / Prize given in appreciation

45 Payment of cell phone bill

46 Foreign allowance non Govt. em

47 Foreign allowance Govt. employ

48 Motor car

49 Income tax paid by employer

50 Remuneration for extra work

51 Advance salary

52 Arrears of salary

53 Tribal area allowance

amount expende

Tax free

Taxable

Tax free

Tax free

loan more than Rs

ployer will be

See Table Below

Taxable

loan less than Rs 20000 Tax free

employee Tax free

Tax free

Tax free

r obligation paid By the Taxable

ce, accident insurance Tax free

ployer Taxable

Tax free

id by the employer

loyer)

Taxable

id by the employer

loyee)

Taxable

Tax free

Taxable

xpenses etc. Tax free

Tax free

our Tax free

Exempt up to thamount expende

port employees Tax free

Taxable

ut paid by employer. Taxable

Taxable

Tax free

Tax free

Tax free

of performance Taxable

Tax free

ployee Taxable

ee Tax free

Taxable

Taxable

Taxable

Taxable

Taxable

Exempt up to 20

p.m

STUDY NOTES

amount expended

Tax free

Taxable

Tax free

Tax free

See Table Below

Taxable

Tax free

Tax free

Tax free

Tax free

Taxable

Tax free

Taxable

Tax free

Tax free

Taxable

Tax free

Taxable

Tax free

Tax free

Tax free

Exempt up to theamount expended

Tax free

Tax free

Taxable

Taxable

Tax free

Tax free

Tax free

Taxable

Tax free

Taxable

Tax free

Tax free

Taxable

Taxable

Taxable

Taxable

Exempt up to 200 p.m

Documents

Subu Salary Final Edited