Download Automated All in One TDS On Salary for Govt and Non-Govt employees for F.Y.2016-17 & Assessment Year 2017-18 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic H.R.A. Calculation + Automated Arrears Relief Calculator U/s 89(1) with Form 10E + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 as per the new Budget 2016]
Below given the Income Tax Deduction & Allowances which can relief from Income Tax U/s 10
1.
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10(13A)read with Rule 2A
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House rent allowance
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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].
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2.
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10(14)
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Children education allowance
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Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
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3.
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10(14)
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Hostel expenditure allowance
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Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
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4.
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10(14)
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Transport allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty
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Up to Rs. 1600 per month (Rs. 3200 per month for blind and handicapped employees) is exempt
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5.
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Sec. 10(14)
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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.
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Amount of exemption shall be lower of following:
a) 70% of such allowance; or
b) Rs. 10,000 per month.
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6.
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10(14)
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Conveyance allowance granted to meet the expenditure on conveyance in performance of duties of an office
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Exempt to the extent of expenditure incurred for official purposes
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7.
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10(14)
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Travelling allowance to meet the cost of travel on tour or on transfer
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Exempt to the extent of expenditure incurred for official purposes
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8.
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10(14)
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Daily allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty
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Exempt to the extent of expenditure incurred for official purposes
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9.
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10(14)
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Helper/Assistant allowance
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Exempt to the extent of expenditure incurred for official purposes
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10.
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10(14)
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Research allowance granted for encouraging the academic research and other professional pursuits
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Exempt to the extent of expenditure incurred for official purposes
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11.
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10(14)
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Uniform allowance
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Exempt to the extent of expenditure incurred for official purposes
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12.
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10(7)
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Any allowance or perquisite paid or allowed by Government to its employees (an Indian citizen) posted outside India
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Fully Exempt
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13.
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-
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Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)
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Fully Exempt.
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14.
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10(45)
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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
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Fully Exempt
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15.
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-
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Allowances paid by the UNO to its employees
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Fully Exempt
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16.
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10(45)
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Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)
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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.
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17.
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Sec. 10(14)read with Rule 2BB
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Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)
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Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
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18.
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Sec. 10(14)read with Rule 2BB
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Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)
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Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
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19.
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Sec. 10(14)read with Rule 2BB
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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
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Up to Rs. 200 per month is exempt
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20.
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Sec. 10(14)read with Rule 2BB
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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)
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Up to Rs. 2,600 per month is exempt
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21.
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Sec. 10(14)read with Rule 2BB
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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)
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Up to Rs. 1,000 per month is exempt
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22.
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Sec. 10(14)read with Rule 2BB
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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)
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Up to Rs. 3,900 per month is exempt
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23.
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Sec. 10(14)read with Rule 2BB
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Underground Allowance to employees working in uncongenial, unnatural climate in underground mines
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Up to Rs. 800 per month is exempt
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24.
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Sec. 10(14)read with Rule 2BB
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High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)
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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
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25.
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Sec. 10(14)read with Rule 2BB
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Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)
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Up to Rs. 4,200 per month is exempt
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26.
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Sec. 10(14)read with Rule 2BB
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Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)
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Up to Rs. 3,250 per month is exempt
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27.
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10(14)
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City Compensatory Allowance
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Fully Taxable
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28.
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10(14)
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Fixed Medical Allowance
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Fully Taxable
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29.
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10(14)
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Tiffin, Lunch, Dinner or Refreshment Allowance
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Fully Taxable
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30.
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10(14)
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Servant Allowance
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Fully Taxable
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31.
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10(14)
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Project Allowance
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Fully Taxable
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32.
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10(14)
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Overtime Allowance
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Fully Taxable
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33.
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10(14)
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Telephone Allowance
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Fully Taxable
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34.
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10(14)
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Holiday Allowance
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Fully Taxable
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35.
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10(14)
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Any Other Cash Allowance
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Fully Taxable
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