Deductions U/s 10|As per the Income
Tax Act, 1961, each tax payers Indian citizen who's Income above a certain
limit of income is liable to pay tax. So, with each financial year falling,
taxpayers look for ways to reduce their tax liability.
To reduce the burden on taxpayers, to encourage them to save, invest and pay taxes, the law lists some incomes as exemptions.
Benefits U/s 10 of the Income-tax Act
Salaried Persons are given many benefits in addition to
regular income. too many of these deductions are allowed part of the total
income, whereas some of them are allowed for exemption under section 10.
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1. Special allowance under section 10 (14):
Some allowances are classified as
special discounts under section 10 and no tax is levied. Exceptions are subject
to the allowable amount or the actual amount used for the specific purpose,
whichever is less.
2. Daily Allowance: This includes
daily compensation to cover expenses incurred during an official tour or
relocation / transfer to a new place of work.
3. Travel Allowance: It is paid to
the employees to cover their travel expenses during official visit or job
transfer.
4. Assistant Allowance: This concession
is given for the fee of an assistant appointed to assist in the discharge of
government duties.
5. Uniform Allowance: In case it is
required to wear uniform in line of office duty, allowance is given to cover
the cost of purchase and maintenance of uniform.
6. Transport Allowance: This grant
is given to cover the cost of official travel. It does not reimburse the cost
of traveling from home to work.
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Form 16 Part Part B as per Old and New Tax Regime U/s 115 BAC]
7. Another allowance under section 10 (14) (ii):
Exemption of allowances under
sub-section (14) (ii) of section 10 of the Income-tax Act
Climate allowance: This includes
compensation for working at high altitudes or in hilly areas.
Up to Rs.800 / - for Himachal
Pradesh, Uttar Pradesh, Jammu & Kashmir & North Eastern Hills.
Discount up to Rs 7,000 per month
for Siachen.
Discount up to Rs. 300 for other
high altitude places.
• Tribal Area Allowance: Rs.200 / -
for those working in pre-classified tribal, scheduled or agency areas like
Karnataka, West Bengal, Madhya Pradesh, Assam, Orissa, Tamil Nadu, Bihar, Uttar
Pradesh and Tripura.
Border Area Allowance: Under Rule2BB of Section 10 (14) (ii), allowances ranging from Rs.200 to Rs.1,300 per
month are given to Armed Forces personnel working in border areas, remote areas
or any troubled area. .
Compensatory Field Allowance: Grant
of Rs.2,600 / month is acceptable under section 10 (14) (ii), if a person is
allowed to perform duties in unusual areas like Nagaland, Jammu and Kashmir,
Himachal Pradesh, Uttar Pradesh. Being given. ,
• Child Education Fund: Under this
section 10 (14) (ii) up to a maximum of 2 children are given a rebate of Rs.100
/ - on allowance. 300 / month / hostel allowance can also be claimed for a
child up to two children.
Anti-Terrorism Allowance: 3,900 /
month This grant is directed to the persons employed in the Armed Forces for
the purpose of Section 10 (14) (ii).
ীপ
Island Fee Allowance: Exemption under Section 10 (14) (ii) of Rs.9600
Another allowances under sub-section
(14) (ii) of section 10 of the Income-tax Act include:
800 per month for underground
miners.
Rupees for workers in highly active
sectors. 4,200 / month.
1,000 1,000 / month for staff in
certain changed area areas.
Physically handicapped employees will
get Rs. 1,600 / month.
• Transportation allowance Rs.
1,600 / month.
In addition to the above section, you will get Rs. You can save up to 46,800 under section 80C of the Income Tax Act. Term insurance is one of the most effective ways to save tax under this category. So choose a term policy now.
Download Automated Income Tax Master of Form 16 Part B for the F.Y.2021-22 for 100 Employees [This Excel Utility can prepare at a time 100 Employees
Form 16 Part Part B as per Old and New Tax Regime U/s 115 BAC]
