Particulars Exemption availed (least of the following) Salary meaning Years of service Govt limits Avg monthly salary Others Leave entitlement 10(10AA) 1.avg monthly entitled in months 2.10*Avg monthly salary 3.3lakhs 4.actually received Basic+da (terms of on percentage Ignore fraction 3 lakhs 10 months immediately preceding the retirement (may 17,take 17 days) Maximum leave allowed 1 month for tax Gratuity 2covered under 10(10)(ii) 1.15 days salary of last month*length of service 2.10 lakhs 3.gratuity recived Salary+da Period above 6 as full 10 lakhs Salary of last Seasonal-7days work not 15. of last 3 months wages Gratuity not covered under G-act 10(10)(iii) 1.½ of 10 months Avg salary*completed year of services 2.10 lakhs 3.gratuity recived Basic+da (terms of on percentage Ignore fraction 10 10 the month of retirement Pension 10 (10A) Commuted- Person covered gratuity act-1/3 rd received amt. Not covered under Family pension after death taxable-1/3 or 15000 lower exempted Nps scheme 10% of employer contribution Salary +da services 1.15 days Avg pay*completed year of service 2.5 lakh 3.amount recived Above,6 months, take full 5 lakhs Vrs scheme 10(10 c) Maximum 5 lakhs HRA 10 (13 A) Rule 2A 1.50% or 40% of salary in(mbcd) 2.hra received 3.rent paid excess of 10% of salary (terms of on percentage 5000 Or 20% of salary Basic Non-govt employees –on exemption Retirement or lump sum benefits….exemptions calculations allowances before
Children’s education 100 mnth for 2 children Hostel expenditure 300 to 2 Valuation of Perquisites……. Particulars Sub headings Valuation of perquisites(taxability in the hands of employee) Salary meaning others 1.Rent free Govt employees License fees by employer Exceeding 25-15% of salary Between 10-25-10% of salary Less than 10%-7.5 % of salary Salary include basic+da(forming part of all) benfits Not lump sum amounts, perquisites, Remote tax (away 40km from a city not exceeding population 20000, Leased or hired by owner 15% of salary or lease rent paid whichever is less Same as above Transfer of room(having two houses) Up to 90 days-lower rented house – 90 days, both house rent will include in salary 2.Furnished rent free Furnished houses Value as per above 1. For unfurnished + 10% of cost of furniture or hire charges if hired Hotels, serviced apartments, houses Lower of 24% of salary Or actual amount paid by employer 15 days nothing chargeable to tax 3.valuation of at rates Calculate as per 1 and 2 Less: amount charged form employee Balance amt chargeable to tax facility Above 1000 per child chargeable to tax (circular no.8.2012) For family and sister ,all will be taxable
5..Leave travel facility For all of the amount paid or By air-economic far Train or same route train service or unrecognized public services-first AC tickets By public transport-first class or deluxe class ( it is exemption available against money recived) 1. Available for two out of 4 block of years for family depending on him. 2.Carry over possible, for next first year 6.valaution incase of interest ( it is exemption available against money recived) Calculate monthly interest rate(as per sbi) Less: amount collected as interest (Balance of amount is chargeable to tax) For medical disease exempted Not Exceeding not chargeable 7.medical facilities In India upto and for owners,govt,approved hospitals-fully exempt ( it is exemption available against recived) As for medical insurance also exempt fully In outside India Cost medical treatment and stay- upto RBI limit Travelling if salary nor exceeding 2 lakhs ( it is exemption available against money recived) 4. Valuation of perquisite in respect of motor car Particulars Car own by employer Car own by employee Other conveyance Running expnses met by employer Running expnses met by employee Running expnses met by employer Running expnses met by employee Running expnses met by employer Official use exempt exempt Fully exempt Fully exempt Fully exempt Private used Expnses incurred by employer+ dep 10% Less: amount recoverd Balance is chargeable dep 10% Less: amount recoverd Balance is chargeable Expenses incurred by employer Less: amount recovered Balance is chargeable Expenses incurred by employer Less: amount recovered Balance is chargeable Expenses incurred by employer Less: amount recovered Balance is chargeable Partly private and partly official 1800 or 2400/month (above 1.6 cubic)+900 driver charges 600 or 900/mnth (Above 1.6)+900 Actual expenditure incurred Less:1800 or 2400 Less: amount recovered Actual expenditure incurred Less:1800 or 2400 Less: amount recovered Actual expenditure incurred Less:900 Less: amount recovered Balance chargeable to tax