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Download ïƒ BASIC SALARY ïƒ Dearness Allowance (D.A.) ïƒ Commission ïƒ Bonus ïƒ Gratuity ïƒ Leave Salary Encashment ïƒ Pension ïƒ Retrenchment Compensation ïƒ

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  • Slide 1
  • BASIC SALARY Dearness Allowance (D.A.) Commission Bonus Gratuity Leave Salary Encashment Pension Retrenchment Compensation VRS Other Receipts in lieu of Salary Allowances Perquisites MOTI THIRUMALA RAJU
  • Slide 2
  • Gross Salary[As per defination u/s17(1)] Basic Salary +Taxable portion of gratuity,pension,LTC,etc +Taxable portion of allowances +Taxable portion of perquisites +Profit in lieu of Salary +Taxable portion of contribution to RPF made by employer GROSS SALARY Less:Deduction u/s 16 16(ii) Entertaintment Allowance 16(iii) Professional Tax INCOME FROM SALARY MOTI THIRUMALA RAJU
  • Slide 3
  • Entertainment allowance This allowance is applicable to central & state government employees Deduction: Lease of following 1.5000 2. 20% of Basic Salary 3.Amount Actually received.Professional Tax[Sec 16(ii)] Deduction is amount actually paid during the previous year MOTI THIRUMALA RAJU
  • Slide 4
  • Special Allowance( Rule 2BB) Sec 10(14)(i) Official: The amount given to meet expenses related to employment. The exemption is- Amt of actual expenditure or amount of allowance, whichever is less. These allowances are Traveling allowance, Daily allowance, Helper allowance, Uniform allowance MOTI THIRUMALA RAJU
  • Slide 5
  • ParticularExemption Children Education AllowanceRs.100 p.m per child (max 2 children) Children Hostel AllowanceRs.300 p.m per child (max 2 children) Allowance for transport sector employees70% of amount received or Rs.6000pm whichever is less Transport/Conveyance allowance( for journey between place of duty & residence Rs.800 pm for general or Rs.1600p.m for handicapped Mining allowance800p.m Tribal Area Allowance200p.m Compensatory field re allowance2600p.m Compensatory Modified Field Area allowance 1000p.m Counter insurgency allowance3900p.m Underground Allowance800p.m MOTI THIRUMALA RAJU
  • Slide 6
  • House Rent Allowance Minimum Of Following Shall Be Exempted u/s 10(13A): 1) Actual Received 2) 50% or 40% of Salary 3) Rent Paid- 10% of Salary NOTE: 1) 50% When house is situated in a metro city, else 40%. 2) Salary = Basic+D.A.(if terms so provide)+ turnover based commission MOTI THIRUMALA RAJU
  • Slide 7
  • Any allowance or perquisites paid or allowed outside India by the government to a citizen of India, for rendering services outside India, is fully exempt from tax Allowances to high court judges u/s 22A(2) of the high court judges Act,1954 Sumptuary allowance given to High court & Supreme court judges Allowance received by an employer of UNO from hid employer MOTI THIRUMALA RAJU
  • Slide 8
  • GRATUITY sec 10(10) During Continuation Of Service On Termination Of Service Fully Taxable Fully Exempt Covered Under PGA Minimum Of Following Exempted 1) Actual Gratuity Received 2) Rs. 3,50,000/- 3)1/2 month Avg Salary X Completed Year of Service Minimum Of Following Exempted 1) Actual Gratuity Received 2) Rs. 3,50,000/- 3) P.M. Salary X Completed Year of Service X 15/26 If Non Governmen t Employee NO YES NO Note: * PGA= PAYMENT OF GRATUITY ACT *SALARY= BASIC+D.A. *COMPLETED YEAR includes every completed year & period in excess of 6 months shall be treated as a year Note: *AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10 *COMPLETED YEAR ignores ANY FRACTION MOTI THIRUMALA RAJU
  • Slide 9
  • LEAVE SALARY ENCASHMENT sec10(10AA) During Continuation Of Service On Termination Of Service Fully Taxable Fully Exempt Minimum Of Following Exempted 1) Actual leave encashment Received 2) Rs. 3,00,000/- 3) 10 Months Average Salary 4) 30 Days Average Salary For Every Completed Year Of Service, Subject To Leaved Availed During The Tenure Of Service. If Non Government Employee NO YES Note: *AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10 [LAST 10 MONTHS EXACT FROM THE DATE OF RETIREMENT.] *COMPLETED YEAR ignores ANY FRACTION MOTI THIRUMALA RAJU
  • Slide 10
  • PENSION sec10(10A) UNCOMMUTED PENSION FULLY TAXABLE FULLY EXEMPT ASSESSEE RECEIVED GRATUITY ONE HALF OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED ONE THIRD OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED IF NON GOVERNMEN T EMPLOYEE NO YES NO COMMUTED PENSION MOTI THIRUMALA RAJU
  • Slide 11
  • RETRENCHMENT COMPENSATION sec10(10B) In any other Case If Compensation Paid Under Any Scheme Approved By The Central Government. Nothing Shall Be Taxable. MINIMUM OF FOLLOWING SHALL BE EXEMPTED a) ACTUAL AMOUNT RECEIVED b) Rs.5,00,000/- c) ANY AMOUNT CALCULATED UNDER INDUSTRIAL DISPUTE ACT,1947 i.e Average of last 3 months8* a5/26 * No of completed years of service and part there in excess of 6 months MOTI THIRUMALA RAJU
  • Slide 12
  • VOLUNTARY RETIREMENT In any other Case RECEIVED FROM SPECIFIED EMPLOYERS MINIMUM OF FOLLOWING SHALL BE EXEMPTED a) ACTUAL AMOUNT RECEIVED AS PER V.R.S. GUIDELINES* or b)Rs.5,00,000/- FULLY TAXABLE GUIDELINES:- a)COMPLETED AGE OF 40 YEARS OR COMPLETED 10 YEARS OF SERVICE (IT IS NOT APPLICABLE ON PUBLIC SECTOR COMPANY) b)THIS IS FRAMED TO REDUCE THE STRENGHT OF EMPLOYEES. c)THE VACANCY CAUSED BY VRS IS NOT TO BE FILLED UP d)THE RETIRING EMPLOYEE IS NOT EMPLOYED IN ANOTHER COMPANY BELONGING TO THE SAME MANAGEMENT e)* THE AMOUNT OF COMPENSATION DOES NOT EXCEED = 3 MONTHS SALARY FOR EACH COMPLETED YEAR OF SERVICE or SALARY AT THE TIME OF RETIREMENT x BALANCE MONTHS OF SERVICE LEFT # SPECIFIED EMPLOYERS :- a)COMPANY b)LOCAL AUTHORITY c)CO-OPERATIVE SOCIETY d)ANY AUTHORITY ESTABLISHED UNDER CENTRAL/STATE/PROVINCIAL ACT e)SPECIFIED UNIVERSITY f)INDIAN INSTITUTE OF TECHNOLOGY(IIT) g)STATE GOVERNMENT h)CENTRAL GOVERNMENT i)NOTIFIED INSTITUTION j)NOTIFIED INSTITUTION OF MANAGEMENT (IIM) MOTI THIRUMALA RAJU
  • Slide 13
  • Type of fund Employer Contribution principal) Employers contribution interest) Employee's Contribution principal) Employees Contribution interest) Amount withdrawn on retirement SPFExempt Deduction u/s 80 c ExemptExempt u/s 10(11) RPFExempt up to 12% of salary Exempt up to 9.5% Deduction us 80 cExempt up to 9.5% Exempt subject to condition. If not then RPF treated as URPF URPFExempt No Deduction us 80 c ExemptEmployees contribution exempt. Interest on employee taxable under IOS. Employer contri taxable as salary PPFNA Deduction us 80 cExempt u/s 10(11) Approved Super annuation fund Exempt Deduction us 80 cExempt u/s 10(3) Approved gratuity fund Exempt NA Exempt u/s 10(10) MOTI THIRUMALA RAJU

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