Income tax exemptions for salaried employees 201920

EEA section apart from section 24. What is income tax deduction and exemption? How to use this tax exemption while filling ITR. Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS).

With such allowances and exemptions from income tax for salaried person, you can reduce your tax liabilities to quite an extent. Professional tax is usually paid to the Government by the employer of an organisation, a failure of which can result in imposition of penalties. Section 80C : Deduction under this section allows an exemption upto Rs. Please note that the exemption doesn’t include costs incurred for the entire trip such as shopping, food expenses, entertainment and leisure among others.

This section allows deduction to individuals who are physically and mentally challenged. Income Tax Deduction under Section 80U. As a salaried person, you would want to know the income tax exemption that you can claim and save on taxes. This is a short slide power point presentation (in pdf) which covers all the tax saving sections and investments applicable for tax payers.

While for other employees , the maximum amount of gratuity exemption under section 4(3) is ₹10. This can be partially or completely exempt from taxes. The income tax laws have prescribed a method for computing the HRA that can be claimed as an exemption.

Leave Travel Allowance. Salaried employees can avail exemption for a trip within India under LTA. The exemption is only for the shortest distance on a trip.

The relief given by the previous government has been withdrawn. As the Government believes that it had to bear losses of about Rs. Salaried persons can use these tax benefits and plan their tax liability accordingly.

Taxable income up to Rslakh will be entirely tax -free and. Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. However, exemption of transport allowance of Rs. Is standard deduction applicable to family pensioners? This is the most important section for deductions for every taxpayer.

The maximum exemption limit in the section is INR 1. Most salaried employees receive a specific amount of salary that includes certain allowances too. Thus, those with a total tax payable below Rs. The income tax department of India has fixed five heads of income under which your taxable income is calculated. Not chargeable to tax upto Rs.

This exemption is not applicable from A. It is estimated to collect income tax amount to. It is a fixed amount of deduction from the gross salary of the employee, which was permitted without submitting any proof. Additional exemption of Rs 50for. EPF is mandatory for salaried employees working for companies with.

Refer the document of ‘Allowance available for different category of taxpayers’ Individual – Salaried Employee : II. Zero tax liability for individuals with income in the tax bracket of less than 2. Up to tax for income falling into the tax bracket of 2. Salaried taxpayers should also understand that these avenues are to reduce their tax burden an in no way, a means to avoid paying income tax. For salaried employees , Section 10. The section is presented below for reference: Deductions from salaries Sec 16.

The income chargeable under the head “Salaries” shall be computed after making the following. Co knowledge-base and data repository for professionals, business owners and students.