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11/01/2010

Salary:Taxable and Non-taxable allowances

Allowance generally received to salaried persons and treatment Under Income Tax Act & Rules.

Allowance: means Fixed amount of money or other substance given monthly in addition to salary to meet the particular type of expenditure.

Treatment:Allowances are part of salary and taxable in hands of the assessee if no specific exemption is given under the Income Tax Act/Rules

I am trying to cover most of the allowances but this is not a exhaustive list.

  1. HRA(House Rent Allowance ) house rent allowance is exempted u/s 10(13A) of the income tax act.Least of the following is exempted from HRA Received
    • HRA received
    • House rent paid minus 10 % of salary(salary means basic plus DP plus DA if term of employment so provides)
    • 50% of salary(same meaning as above)in case of rented house situated in Bombay,Madras,Delhi or Calcutta
    • 40 % of salary ,if rented house is situated in any other places

  • City compensatory allowance :Fully taxable.
  • Foreign Allowance :Exempt from tax if paid outside India By the government to the Indian citizen for rendering services outside India.
  • Fixed medical allowance:Taxable.
  • Project Allowance :taxable.
  • Allowances to Supreme court/High court Judges :Not taxable.
  • Servant/helper Allowance :taxable ,if helper  used for official purpose then exempted..
  • Transport Allowance: known also as LODA ,means allowance to meet expenses incurred for office to home and home to office is exempted up to 800 per month maximum.
  • Tiffin Allowance :Taxable .
  • Allowance to meet the cost of travel on tour or on transfer(including amount paid for packing and transportation of personal effects on such transfer):exempted  to the extent allowances used for said purpose.
  • Allowance (know as DA in TA bill) paid for purpose explained in point 11 above ,to meet the ordinary daily charges on account of absence from his normal place of duty):exempted to the extent allowance used for the said purpose
  • Conveyance allowance:To meet the expenditure on conveyance in performance of duties of an official nature:exempted to extent allowance used for said purpose
  • Uniform allowance : exempted to the extent used for the said purpose
  • Children Education allowance :Rs 100 per month per child up to maximum of two child is exempted if expenses made in India
  • Children hostel allowance:Rs 300 per month per child up to maximum of two child is exempted if expenses made in India
  • Allowance granted to employee working in transport system where no daily allowance has not been allowed to meet daily expenses ,done to meet his personal expenses during duty performance from one place to other place :70 % of such allowable exempted maximum up to 6000 per month.
  • Allowance granted for encouraging the academic ,research and other professional pursuits:exempted to the extent used for said purpose
  • many hilly area,remote area,field allowances are exempted on various rate
  • Any other allowance :generally Taxable.

     

    Source:- SimpleTaxIndia.org

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    PME Due Date

    Master Circular No. 25



    Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974



    Subject: Implementation of the Recommendations of the Visual Sub-Committee.



    6. Periodical re-examination of serving Railway Employees:



    6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:



    6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.



    Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.



    (a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.



    (b) Absence from duty for a period in excess of 90 days.



    (2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.



    If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.




    Ammendment: It was ammended in 1993 as below



    Age Group PME Due



    Age 00-45 every 4yrs



    Age 45-55 every 2yrs



    Age 55-60 every year
    Details:-
    As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

    a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
    b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

    NRMU 4 you
    SMLokhande





    6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.