Quick Answer: What Are The Exemptions Under Section 10?

What are special allowances in salary?

Special allowance is a fixed amount that is given to employees over and above the basic salary in order to meet certain requirements.

There is a taxable allowance and an exempt allowance.

There are different categories of special allowances..

How much amount FD interest is tax free?

Senior citizens receiving interest income from fixed deposits, savings account and recurring deposits can avail income tax deduction of up to Rs 50,000 annually. This is a flat deduction available to them over and above the benefits that they may have if their total income does not exceed the taxable threshold.

What is the maximum exemption under section 10?

An allowance of up to INR 100 per month, per child, is tax-free under Section 10. Also, there is a hostel allowance for expenses that are made towards a child’s hostel fee, up to INR 300 per month per child. This exemption can be availed for two children only.

What are the exemptions in income tax?

Deduction Under Section 80C, 80DIncome Tax DeductionsIncome Tax ExemptionsPublic Provident Fund (PPF) Equity Linked Savings Scheme (ELSS) National Pension Scheme (NPS).House Rent Allowance Leave Travel Assistance Long-term capital gains on equity funds3 more rows

What is Section 10 15 of Income Tax Act?

Interest Income exempted under section 10(15) of Income Tax Act, 1961. Interest income or premium on redemption or other payments on notified securities; bonds; annuity certificates; savings and other certificates. … Interest income on notified Relief Bonds. The exemption is available only to Individual and HUF.

What is difference between deduction and exemption?

Tax exemption – The allowed exemptions are not included in your taxable income. They are deducted first to arrive at your gross total income. Tax deduction – Deductions remain clubbed with your income. Once the gross total income is calculated, the deductions are deducted to arrive at Net taxable income.

What is Section 10 13a in income tax?

Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961. … This helps an employee to save tax. But do keep in mind that the HRA received from your employer, is fully taxable if an employee is living in his own house or if he does not pay any rent.

What interest income is not taxable?

As of 2019, the basic personal amount is $12,069, which means that your child doesn’t have to pay income tax or file a return as long as he earns less than this amount.

What is section 10 exemption in income tax?

Section 10 of the Income Tax Act allows the computation of specific incomes as tax-free. As per the Income Tax Act, 1961, every Indian citizen who earns above a certain threshold of income is liable to pay taxes.

What is Section 10 14 Income Tax?

As per Section 10(14)(i) of the Income-tax Act, 1961 (Act), any allowance or benefit granted to the employees to meet expenses wholly, necessarily and exclusively towards performance of official duties (normally referred to as per diems) are exempt from tax, provided such an expense is actually incurred by the …

What is section 17 of Income Tax Act?

Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to …

What are the 70 exemptions in income tax?

​New income tax slabs and rates What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.

Who is not eligible for standard deduction?

Individuals who are at least partially blind or at least 65 years old get a larger standard deduction. If you’re single, you’re married and filing separately or you’re the head of household, it’s $1,650. If you’re married and filing jointly or you qualify as a widow(er), it’s worth $1,300.

What are fully exempted allowances?

Certain categories of taxes are fully exempted such as allowances given to judges at the Supreme Court and the High Courts. Allowances such as house rent allowance are partially exempted as per Section 10(13A). Other allowances such as city compensatory allowance are fully taxable.

What are the allowance under section 10?

The exemption under section 10 covers Leave travel allowance (LTA) Agriculture Income, Life Insurance, Gratuity, leave encashment, Transport allowance etc.