Fully Taxable Allowances: Dearness Allowances, City Compensatory allowance, Medical Allowance, Tiffin allowance, Servant allowance, Project allowance, Overtime allowance, Warden Allowance, Family Allowance, Domestic Servant Allowance Partly Taxable Allowances: Allowances which is received by employee for meeting expenses related to the employer’s business is not taxable in hands of employee to
If Leave salary encashment is received by any employee while in employment then it is fully taxable in the hands of employee. While if leave encashment is received in case of retirement or superannuation or resignation, then exemption is available upto the following limits. In case of Central government or
Persons required to deduct TDS under this section Any specified person responsible for paying any sum to any resident contractor for carrying out any work is required to deduct tax at source. TDS is also required to be deducted for payment to sub contractor. Tax is to be deducted even
An individual suffering from disability himself gets tax benefit under section 80U while an individual gets tax benefits under section 80DDB if any dependent family member of the individual is differently abled. Eligible Assesse Resident individual with disability (may be ordinarily resident or not ordinarily resident) Amount of Deduction from Financial Year 2015-16 The
Only individual and HUF are allowed exemption under this section. Only rent paid for purpose of residence of asseessee himself is considered under this section. If individual is a salaried employee and receives House Rent Allowance (HRA) at any time during the previous year, he is not eligible for deduction.
Eligible Assesse – Resident individual or resident HUF (may be ordinarily resident or not ordinarily resident) Deduction is available in respect of – Expenditure incurred for medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability. Amount paid or deposited under any scheme of Life
Eligible Assessee – All assessees including NRI’s Mode of Payment – If any donation is made for amount exceeding Rs. 10,000 in cash then deduction is not allowed for such donation.Donation made in kind is not eligible for any deduction. You can make donation to any fund by website http://80g.in Amount
Deduction under Section 80E is allowed under Income Tax for interest paid on student loan taken for higher education. The deduction is allowed to encourage users to go for higher studies. Deduction is allowed even if the loan is taken for higher studies outside India. Who can claim the deduction?
Finance Act, 2016 has introduced deduction of interest payable on housing loan for first time home buyers taken from any financial institution over and above the deduction allowed under section 24b. Section 80EE has been amended for this purpose. The deduction is allowed only to individuals, maximum limit of deduction
This section is inserted by Finance Act,2012 and is applicable from Assessment Year 2013-14. Eligible Assesee – Resident Individual who is a new retail investor whose Gross Total Income does not exceed Rs. 12 lakhs Amount eligible for deduction – Amount invested in listed equity shares or listed units of