Taxexcel: Income Tax Deduction U/s 10

Individuals who are looking for investments should consider tax and TDS along with risk and return of an investment. This is because returns may differ depending on the taxation of financial instruments. Income earned from most of the investments are subject to TDS. Say, for example, salary income, interest earned on debentures attract TDS. So one should be aware of tax and TDS applicability and how it can be avoided.

Download Automatic 100 employees Master of Form 16 Part B for F.Y.2016-17 & A.Y.2017-18.[ This Excel Based utility can prepare at a time 100 employees Form 16 part B for the Financial Year 2016-17, This Utility can use both of Govt and Non-Govt Concerned.]

Below mentioned some income and investments where TDS is applicable:

TDS on Salary Individuals who have income above the taxable limit will see the employer deduct TDS on total income, including income other than salary after considering all deductions and exemptions. TDS is applicable as per his income slab. The same can be avoided if investments are made under 80C, 80D of Income Tax Act by providing investment proof of the same. The company will issue a TDS certificate also known as Form 16A at the end of the financial year.

TDS on Interest Income Banks deducts TDS on interest income earned above Rs 10,000 in a year. Taxpayers who fall in higher tax bracket need to pay tax as per liability. Individuals with lower income can claim for the TDS by submitting form 15G or H, whichever is applicable. Also, one can avoid TDS by opening a fixed deposit in the different banks where interest earned in a single bank should not exceed Rs 10,000. Note that the TDS will be applicable on the complete amount not only of the exceeded amount. TDS is applicable at 10 per cent if PAN is not submitted with the bank, 20 percent TDS will be applied.

TDS on EPF Withdrawal TDS will be applicable if Employee Provident Fund is withdrawn before five years of contribution. However, TDS will not be deducted for an amount below Rs 50,000 from June1, 2016. TDS is not applicable when individuals transfer Provident Fund from one account to another Provident Fund Account. TDS will be deducted at 10 per cent if Form-15G or 15H is not submitted provided PAN is submitted. In absence of PAN, it is 20 percent of the amount.

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Below given the Income Tax Deduction & Allowances which can relief from Income Tax U/s 10

1.	10(13A)read with Rule 2A	House rent allowance	Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai) *c) Rent paid minus* 10% of salary** * Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10-10-2013].
2.	10(14)	Children education allowance	Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
3.	10(14)	Hostel expenditure allowance	Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
4.	10(14)	Transport allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty	Up to Rs. 1600 per month (Rs. 3200 per month for blind and handicapped employees) is exempt
5.	Sec. 10(14)	Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.	Amount of exemption shall be lower of following: a) 70% of such allowance; or b) Rs. 10,000 per month.
6.	10(14)	Conveyance allowance granted to meet the expenditure on conveyance in performance of duties of an office	Exempt to the extent of expenditure incurred for official purposes
7.	10(14)	Travelling allowance to meet the cost of travel on tour or on transfer	Exempt to the extent of expenditure incurred for official purposes
8.	10(14)	Daily allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty	Exempt to the extent of expenditure incurred for official purposes
9.	10(14)	Helper/Assistant allowance	Exempt to the extent of expenditure incurred for official purposes
10.	10(14)	Research allowance granted for encouraging the academic research and other professional pursuits	Exempt to the extent of expenditure incurred for official purposes
11.	10(14)	Uniform allowance	Exempt to the extent of expenditure incurred for official purposes
12.	10(7)	Any allowance or perquisite paid or allowed by Government to its employees (an Indian citizen) posted outside India	Fully Exempt
13.	-	Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)	Fully Exempt.
14.	10(45)	Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax: a) Value of rent free official residence b) Value of conveyance facilities including transport allowance c) Sumptuary allowance d) Leave travel concession	Fully Exempt
15.	-	Allowances paid by the UNO to its employees	Fully Exempt
16.	10(45)	Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)	Exempt subject to maximum of Rs. 14,000 per month for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistant on contract basis.
17.	Sec. 10(14)read with Rule 2BB	Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
18.	Sec. 10(14)read with Rule 2BB	Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
19.	Sec. 10(14)read with Rule 2BB	Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa	Up to Rs. 200 per month is exempt
20.	Sec. 10(14)read with Rule 2BB	Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 2,600 per month is exempt
21.	Sec. 10(14)read with Rule 2BB	Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 1,000 per month is exempt
22.	Sec. 10(14)read with Rule 2BB	Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Up to Rs. 3,900 per month is exempt
23.	Sec. 10(14)read with Rule 2BB	Underground Allowance to employees working in uncongenial, unnatural climate in underground mines	Up to Rs. 800 per month is exempt
24.	Sec. 10(14)read with Rule 2BB	High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)	a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) is exempt b) Up to Rs. 1,600 per month (for altitude above 15,000 feet) is exempt
25.	Sec. 10(14)read with Rule 2BB	Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)	Up to Rs. 4,200 per month is exempt
26.	Sec. 10(14)read with Rule 2BB	Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)	Up to Rs. 3,250 per month is exempt
27.	10(14)	City Compensatory Allowance	Fully Taxable
28.	10(14)	Fixed Medical Allowance	Fully Taxable
29.	10(14)	Tiffin, Lunch, Dinner or Refreshment Allowance	Fully Taxable
30.	10(14)	Servant Allowance	Fully Taxable
31.	10(14)	Project Allowance	Fully Taxable
32.	10(14)	Overtime Allowance	Fully Taxable
33.	10(14)	Telephone Allowance	Fully Taxable
34.	10(14)	Holiday Allowance	Fully Taxable
35.	10(14)	Any Other Cash Allowance	Fully Taxable

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Sunday, 9 December 2018

An allowance is mostly outlined because the fastened amount of cash that is given often additionally to wage for the aim of meeting some specific demand connected with the service rendered by the worker or as compensation for uncommon conditions of that services.

Monday, 24 October 2016

Download Automatic 100 employees Master of Form 16 Part B for F.Y.2016-17 & A.Y.2017-18.[ This Excel Based utility can prepare at a time 100 employees Form 16 part B for the Financial Year 2016-17, This Utility can use both of Govt and Non-Govt Concerned.]

Monday, 9 May 2016

Below given the Income Tax Deduction & Allowances which can relief from Income Tax U/s 10

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