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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
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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
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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
. The amount of allowance received
. The amt. spent for that purpose
. The amount of allowance received
. The amt. spent for that purpose
. The amount of allowance received
. The amt. spent for that purpose
. The amount of allowance received
. The amt. spent for that purpose
. 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. 1000 p/m in some cas
xemption is limited to Rs. 3900 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.
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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.
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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
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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%**
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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
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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
Expenditure shall be exclude
the case of an employee who
computed before including th
traveling, doesn't exceed 200
e or any
tment &
mpanies the
ent.
Expenditure shall be exclude
to the extent permitted by the
OMMERCE DEPT.
STUDY NOTES
Is it chargeable to
tax
Not Chargeable to tax
(No MonetaryCeiling)
Not Chargeable to tax
(No Monetary
Ceiling)
Not Chargeable to tax
(No Monetary
Ceiling)
e
e
Not Chargeable to tax
(No Monetary
Ceiling)
Not Chargeable to tax
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
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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.
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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
e 10 Years but up to 15 years
e 15 Years but up to 20 years
3 years (Rs. 7.5 lakhs and above)
3 years (below Rs. 7.5 lakhs)
e 3 Years but up to 5 years
e 5 Years but up to 7 years
amount up to Rs. 4 lakhs
> Rs. 4 lakhs
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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):
Least of the followings:
(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
Least of the followings:
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)
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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
8/13/2019 Subu Salary Final Edited
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
8/13/2019 Subu Salary Final Edited
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