INCOME FROM SALARY EMPLOYER EMPLOYEE RELATIONSHIP MUST BE PRESENT FOR CLASSIFYING THE INCOME AS SALARY INCOME.

. SALARY INCOME IS TAXABLE ON DUE OR RECEIPT BASIS WHICHEVER IS EARLIER. IT INCLUDES: 1. SALARY DUE AND RECEIVED IN PY. 2. SALARY DUE IN PY BUT NOT RECVD IN PY. 3. ADVANCE SALARY. 4. ARREARS OF SALARY (NOT TAXED BEFORE). 5. ANY SALARY INCOME RECEIVED/DUE FROM PAST, PRESENT OR FUTURE EMPLOYER SHOULD BE TREATED AS SALARY INCOME.

EXEMPTIONS U/S 10

Sec 10(1) Sec 10(2) Sec 10(2A) Sec 10(5) Sec 10(7) Sec 10(10) Sec 10(10A)

Agricultural Income Hindu Undivided Family Share In Profit Of Partnership Firms Leave Travel Concession Foreign Allowance To Govt. Ee Gratuity Pension

Sec 10(12) Sec 10(13A) Sec 10(14) Sec 10(10D) Sec 10(15) Sec 10(16) Sec 10(17) Sec 10(17A) Sec 10(32) Sec 10(34) Sec 10(35)

Recognised Provident Fund House Rent Allowance Special Allowances Amount Received Against LIC Policy Interest In Deposits And Securities Scholarships Daily Allowance From MLA, MLC, MP Awards Received Income From Minor Child Dividend On Shares Of Indian Income From Units Of UTI/MF

Sec 10(10AA) Leave Encashment Sec 10(10B) Sec 10(10C) Sec 10(11) Retrenchment Compensation Voluntary Retirement Scheme Statutory Provident Funds

ALLOWANCES U/S 10(14)

FULLY TAXABLE
Dearness Allowance Medical Allowance City Compensatory Allowance Project Allowance Refreshment Allowance Tiffin/lunch allowance Servant/ peon allowance Warden allowance Shift allowance FIXED EXEMPTION AMOUNT P.M Education Allowance [Rs. 100 Pm, Per Child, Max 2] Hostel Allowance [Rs. 300 Pm, Per Child, Max 2] Commutation Allowance [Rs. 800 OR Rs 1,600 Pm for Handicaps] EXEMPTION BASED ON ACTUAL AMOUNT SPENT u/s 10(14) Travelling Allowance Transfer Allowance Conveyance Allowance Daily Allowance Helper Allowance Research Allowance Uniform Allowance

EXEMPT

EXEMPTION SUBJECT TO CERTAIN CONDITIONS

PROVIDENT FUNDS
ACCOUNT Employees Contribution During PY Employers Contribution During PY DETAILS It Is An Investment By The Employee. Not An Income An Income SPF U/S 10(11) Exempt RPF U/S 10(12) Exempt URPF U/S 17(3) Exempt

Exempt

Exempt Upto 12% Of Salary I.E. Excess Is Taxable 12% Of Basic + DA Exempt Upto 8.5% P.A. Excess Is Taxable Exempt Subject To Rules

Exempt

Interest Credited During PY Lump sum Amount Received On Retirement

8.5% Of Balance In PF A/C (RPF)

Exempt

Exempt

Exempt

Taxable Under Income From Other Sources

TAXABLE (AMOUNT WITHDRAWN)

CONTRIBUTION EMPLOYEE NOT AN INCOME EMPLOYER TAXABLE (INCOME FROM SALARY) EMPLOYER INTEREST EMPLOYEE TAXABLE (INCOME FROM OTHER SOURCES)

GRATUITY U/S 10(10)

DURING SERVICE FULLY TAXABLE

GOVT EMPLOYEE FULLY EXEMPT

PG ACT LEAST OF:

OTHER EMPLOYEES LEAST OF:

INCLUDING GOVT. EMPLOYEE

15/26 X SALARY LAST DRAWN X CSY ACTUAL RECEIVED MAX RS. 10,00,000 ROUND OFF > 6 MONTHS SALARY = BASIC + DA BOTH

15/30 X AVG SALARY X CSY ACTUAL RECEIVED MAX RS. 10,00,000 NO ROUND OFF SALARY = BASIC + DA PART + TURNOVER COMMISSION

PENSION U/S 10(10A)

UNCOMMUTED PENSION

COMMUTTED PENSION

FULLY TAXABLE

GOVERNMENT EMPLOYEE

NON GOVERNMENT EMPLOYEE

INCLUDING GOVERNMENT EMPLOYEE

FULLY EXEMPT

RECEIVED GRATUITY

NOT RECEIVED GRATUITY

1/3 OF 100% PENSION COMMUTTED

1/2 OF 100% PENSION COMMUTTED

PERQUISITES

TAX ALL
( RESPONSIBILITY OF EMPLOYEE MET BY EMPLOYER )

TAX SPECIFIED 1. WHOLE TIME DIRECTORS 2. SALARY > RS. 50,000 pa 3. 20% OF VOTING POWER i.e. 20% OF EQUITY SHARE CAPITAL 1. MOBILE BILL 2. LAPTOP

FREE ALL

1. LIC PREMIUM 2. CLUB/CREDIT CARD 3. RENT FREE ACCOMODATION 4. INCOME TAX 5. PROFESSIONAL TAX 6. CONCESSIONAL/FREE LOANS > RS. 20,000 3. MEDICAL PREMIUM 4. OFFICIAL REIMBURSEMET

ENTERTAINMENT ALLOWANCE DEDUCTION U/S 16(ii) (Only for a Govt. Ee) Least of: 1. 1/5th of only basic salary 1. Actual received 2. Rs. 5,000 Least of:

HOUSE RENT ALLOWANCE U/S 10(13A)

1. 50% of salary (if staying in Mumbai, Calcutta, Delhi or Madras) OR 40% of salary (if residing in other cities) 2. Actual received 3. The excess of rent paid over 10% of salary.

TAXABILITY OF MEDICAL REIMBURSEMENT

ALLOWANCE

PREMIUM

EXPENSE REIMBURSEMENT

TAX ALL

FREE ALL

GOVT ---------> FREE EER OWN HOSPITAL--------->FREE ABROAD----->RBI--------->FREE

PVT. HOSPITAL, FAMILY DOCTOR, ETC. --------->FREE UPTO Rs.15,000

RETRENCHMENT U/S 10(10B) Least of: 1. As Per Industrial Disputes Act 2. Actual Received 3. Max Rs. 5,00,000
DURING SERVICE FULLY TAXABLE (INC. GOVT. EE)

LEAVE ENCASHMENT U/S 10(10AA)

GOVT EE FULLY EXEMPT Least Of: 1. 2.

OTHER EE

Avg Salary X Leave Credit Avg Salary X 10 Actual Received Max Rs. 3,00,000

VOLUNTARY RETIREMENT FROM SERVICE u/s 10(10C) Least of: 1. Actual received 2. Max Rs. 5,00,000

3. 4.

Salary = Basic + DA Part + Turnover Commission Avg Salary Of 10 Preceding Months Leave Entitlement Is 1 Month for 1 Completed Year of Service Leave Credit = Entitlement Taken