I would like to share this important information for salaried employee who paid or deduct Tax as TDS and submit Income Tax Return annually. Normally Salaried employee does not know all sections of Income Tax related with Form No. 16. and thus they are in trouble after furnishing Annual Return to Income Tax Department. Salary Income classified into 6 parts.
- CHARGE-ABILITY
- DEDUCTIONS
- DEFINITIONS
- EXEMPTIONS
- ALLOWANCES
- VALUATION OF PERQUISITES
All the parts are related with Income Tax Sections found in Form No. 16. The following table are clarify all the conclusions regarding Salary Income.
SECTION NUMBER
|
DETAILS
|
Sec 15
|
CHARGEABILITY
|
Sec 16 : DEDUCTIONS:-
| |
Sec 16(ii)
|
ENTERTAINMENT ALLOWANCE
|
Sec 16(iii)
|
PROFESSION TAX
|
Sec 17 : DEFINITIONS:-
| |
Sec 17(1)
|
SALARY
|
Sec 17(2)
|
PERQUISITES
|
Sec 17(3)
|
PROFITS IN LIEU OF SALARY
|
EXEMPTIONS:-
| |
Sec 10(5)
|
VALUE OF TRAVEL CONCESSION OR ASSISTANCE
|
Sec 10(6)
|
IN CASE OF A FOREIGN NATIONAL
|
Sec 10(7)
|
INDIAN CITIZENS EMPLOYED ABROAD BY GOVERNMENT OF INDIA
|
Sec 10(45)
|
IN CASE OF CHAIRMAN OR MEMBER OF UNION PUBLIC SERVICE COMMISSION
|
Sec 10(10)
|
GRATUITY
|
Sec 10(10A)
|
PENSION
|
Sec 10(10AA)
|
LEAVE SALARY
|
Sec 10(10B)
|
RETRENCHMENT COMPENSATION
|
Sec 10(10C)
|
VOLUNTARY RETIREMENT / SEPARATION SCHEME
|
Sec 10(10CC)
|
TAX ON NON MONETARY PERQUISITES
|
Sec 10(11)
|
STATUTORY / PUBLIC PROVIDENT FUND
|
Sec 10(12)
|
RECOGNISED PROVIDENT FUND
|
Sec 10(13)
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APPROVED SUPERANNUATION FUND
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ALLOWANCES:-
| |
Sec 10(13A)
|
HOUSE RENT ALLOWANCE
|
Sec 10(14)
|
SPECIAL ALLOWANCES(Allowances prescribed by the CBDT under Rule 2BB of the Income-tax Rules as exempt to the extend spent or up to specified limit)
|
VALUATION OF PERQUISITES:-
| |
Sec 17(2)(i)
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RESIDENTIAL ACCOMODATION FREE OF COST
|
Sec 17(2)(ii)
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RESIDENTIAL ACCOMODATION AT A CONCESSIONAL RENT
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Sec 17(2)(iii)
|
BENEFITS OR AMENITIES TO SPECIFIED EMPLOYEES
|
Sec 17(2)(iv)
|
ANY SUM PAID BY THE EMPLOYER IN RESPECT OF ANY OBLIGATION OF THE EMPLOYEE
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