Section 10 of the Income-tax Act allows certain income to be counted as tax-free.

 

According to the Income Tax Act,1961, every Indian citizen who earns above a certain limit of income is liable to pay tax. Thus, with each financial year declining, taxpayers look for ways to reduce their tax liability.

Deduction U/s 10

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In order to reduce the burden on the taxpayer, to save tax, to invest and to pay, the law lists certain incomes as exempt.

Tax relief under Section 10 of the Income Tax Act

Department and sub-division category discounts

10 (1) There is no tax on self-employed agricultural income

10 (2) There is no tax on the income of a member of a Hindu recognized family 

10 (10c) Voluntary Contribution Compensation Rs. 5 lakh rupees

There is no tax on life insurance benefits including 10 (10d) bonus

10 (11) (12) No tax was withdrawn from the Provident Fund

10 (10BC) There is no government compensation for losses due to disasters

10 (13A) House Rent Allowance (HRA) is exempted in the following lowest cases: If the rent in the metro city pays rent outside of 10% salary, the actual HRA is 40% or salary 50%.

10 (15) Earnings from tax-free security is not a duty

Other exemptions under section 10

Salary employees are given various benefits excluding regular income. Most of these benefits are considered part of the total income, with some of them allowed under Section 10.

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Income Tax Form 16

Special Allowance under Section 1 (14):

Certain allowances are classified as special discounts under section 10 and no duty is levied. Exceptions depend on the amount allowed or the actual amount used for the specific purpose, whichever is less.

Entitled under sub-section (14) of section 10 of the Income-tax Act include:

2. Daily Allowance: This includes daily compensation paid for the draft of expenses incurred during official travel or relocation/relocation to a new place of work.

3. Travel Allowance: Employees are allowed to deduct their travel expenses during official travel or any job transfer. This includes the cost of moving personal belongings

4. Assistant Allowance: This exemption has been given for the remuneration of the assistant appointed to assist in the discharge of official duties.

5. Uniform Allowance: In any case when it is required to wear a uniform while on official duty, this allowance is given to bear the cost of purchase and maintenance of the uniform. 

Vehicle. Carrying Allowance: This grant is provided to cover the expenses incurred on government travel. It does not compensate for the cost of travelling from home to work.

Research. Research or Academic Allowance: Education and research institutes have given this exemption to encourage research or academic training, education, etc.

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Salary Sheet for form 16

8. Special allowance under section 10 (14) (ii):

Allow exemption under sub-section (14) (ii) of section 10 of the Income-tax Act

Mastic Climate Allowance: This includes compensation for working in high altitude or mountainous areas.

Rs. 800 for Himachal Pradesh, Uttar Pradesh, Jammu and Kashmir and Northeast Mountains.

Discount up to 7,000 / month per month for Si Siachen

High Discount up to Rs.300 for other high-altitude places

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Income Tax Form Part A&B

• Tribal Area Allowance:  200 grant for those working in pre-classified tribal, scheduled or agency areas such as Karnataka, West Bengal, Madhya Pradesh, Assam, Orissa, Tamil Nadu, Bihar, Uttar Pradesh and Tripura.

Order Border Area Allowance: Under Rule 2 BB of Section 10 (14) (i), allowances ranging from Rs. 200 to Rs.

Ens Compensation Field Allowance: Grant of Rs.2,600 / month is sanctioned under Section 10 (14) (ii), if it is given to a person for assigning duties in unusual cases like Nagaland, Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Sikkim, Andhra Pradesh And Manipur.

Education Children's Education Fund: This Section 10 (14) (ii) exemption is given for a maximum of                                                                                                                                                                                                                                                                                                                                                  100 / child allowance for up to 2 children. A hostel allowance can be claimed up to Rs.300 / month / 2 children.

Counter-militant allowance: In section 10 (14) (ii) med 3,900 / month this grant is directed to persons employed in the anti-terrorist armed forces.

Prepare at a time 50 Employees Automated Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Form 16 Part B