Allowances Exempted From Income Tax, Central Govt Employees, 7th Pay Commission latest news

Central Govt Employees

Below is the list of Allowances Exempted From Income Tax, Central Govt Employees, 7th Pay Commission latest news. Every Salaried person must near in mind the following points before filing Income tax return:=

Sl No Sections Particulars Benefits
01. 10(13A) House Rent Allowance (Sec.
10(13A) & Rule 2A)
Least of the following is exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house situated in
Mumbai, Calcutta, Delhi or Madras)
c) Rent paid minus 10% of salary
* Salary= Basic + DA (if part of retirement
benefit) + Turnover based Commission
Note:
i. Fully Taxable, if HRA is received by an
employee who is living in his own house or
if he does not pay any rent
ii. It is mandatory for employee to report PAN
of the landlord to the employer if rent paid
is more than Rs. 1,00,000 [Circular No. 08
/2013 dated 10th October, 2013].
02. 10(14) Children Education Allowance Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
03. 10(14) Hostel Expenditure Allowance Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
04. 10(14) Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty Up to Rs. 1,600 per month (Rs. 3,200 per month for blind and handicapped employees) is exempt
05. 10(14) Transport Allowance to an
employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to
another place provided employee is not in receipt of daily allowance.
Amount of exemption shall be lower of
following:
a) 70% of such allowance; or
b) Rs. 10,000 per month.
06. 10(14) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office Exempt to the extent of expenditure incurred
07. 10(14) Any Allowance granted to meet the cost of travel on tour or on transfer Exempt to the extent of expenditure incurred
08. 10(14) Daily Allowance to meet the
ordinary daily charges incurred by an employee on account of absence from his normal place of duty
Exempt to the extent of expenditure incurred
09. 10(14) Helper/Assistant Allowance Exempt to the extent of expenditure incurred
10. 10(14) Research Allowance granted for
encouraging the academic research and other professional pursuits
Exempt to the extent of expenditure incurred
11. 10(14) Uniform Allowance Exempt to the extent of expenditure incurred
12. 10(7) Foreign allowances or perquisites paid or allowed by Government to its employees (an Indian citizen) posted outside India Fully Exempt
13. —- Allowances to Judges of High
Court/Supreme Court (Subject to certain conditions)
Fully Exempt
14. 10(45) Following allowances and
perquisites given to serving
Chairman/Member of UPSC is
exempt from tax:
a) Value of rent free official
residence
b) Value of conveyance facilities
including transport allowance
c) Sumptuary allowance
d) Leave travel concession
Fully Exempt
15. —– Allowances paid by the UNO to its employees Fully Exempt
16. 10(45) Allowances to Retired Chairman/Members of UPSC
(Subject to certain conditions)
Exempt subject to maximum of Rs.14,000 per
month for defraying services of an orderly and for
secretarial assistant on contract basis.
The value of residential telephone free of cost and
the number of free calls to the extent of 1500 per
month shall be exempt.
17. Sec.
10(14)
Special compensatory allowance (Hilly Areas) (Subject to certain conditions and locations) Amount exempt from tax varies from Rs. 300 per
month to Rs. 7,000 per month.
18. Sec.
10(14)
Border area allowances, Remote Locality allowance or Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) Amount exempt from tax varies from Rs. 200 per
month to Rs. 1,300 per month
19. Sec.
10(14)
Tribal area allowance given in (a)Madhya Pradesh (b) Tamil Nadu (c)Uttar Pradesh (d) Karnataka (e)Tripura (f) Assam (g) West Bengal(h) Bihar (i) Orissa Rs. 200 per month

Leave a Reply

Your email address will not be published. Required fields are marked *