Exemptions under the head of Salary Income Plus All in One TDS on Salary for Non-Govt employees for the Financial Year 2014-15

Click here to Download the Automatic All in One TDS on Salary for Non -Govt Employees for the FY 2014-15 ( Prepare at a time Tax Compute Sheet + Individual Salary Structure + Automated HRA Exemption + Automated Form 16 Part A&B and Part B)

Section – 10 (5)
Exemption for Leave Travel Concession
The amount actually incurred on performance of travel on leave to any place in India by the shortest route to that place is exempt. This is subject to a maximum of the air economy fare or AC 1st Class fare (if journey is performed by mode other than air) by such route.
Provided that the exemption shall be available only in respect of two journeys performed in a block of 4 calendar years.

Section – 10(10):
Gratuity Exemption
Descriptions :
Least of the following will be exempt
1. Amount received
2. Max  Rs. 10,00,000
3. 15*/26 x LS x (CYS + Fraction 6 months)
LS : Last Month Salary Drawn (Salary means Basic + DA (both))

Section – 10(10A)
Commuted Pension, Actual  Amount

Section – 10(10AA)
Leave Encashment upon Retirement
Other Employee Least of the following will be exempted
1.Amount Received
2.Rs. 3, 00,000
3.10 x AS
(LE or 30 days) Received by Employee During the Employment (Fully TAXABLE)
Note – Govt. Employee {Fully Exempt} Received by Legal Heir (Fully exempt)

Section – 10(10B)
Retrenchment Compensation
Least of the followings will be Exempt
1.Amount Received
2.Amount Calculated under “Industrial Dispute Act”
3.Rs.5,00,000
Note – Ref. Sec. 10(10B) of IT

Section – 10(10C)
VRS
Least of the followings will be Exempt
1.Amount Received
2.Rs.5,00,000
Note – Ref. Sec. 10(10C) of IT

Section – 10(13A)
HRA
The least of the following will be exempted
1.Amount received
2.50% or 40% of Salary
3.Rent paid less 10% of Salary
4.Salary means; Basic Salary+D.A

Section – 10(14)
Children Education Allowance.
Rs.100 per month per child upto a maximum 2 children.
Hostel expenditure Allowance on employee’s child
Rs.300 per month per child upto a maximum two children.
Note: Allowance granted to meet Hostel expenditure Allowance on employee’s child.Deductions under section 80 of Income Tax Act:
Section – 80C:
General deduction for investment in PPF, PF, Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc. Maximum Rs. 1,50,000 is allowed. Investment need not be from taxable income.
Section – 80CCC
Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income. Maximum is Rs 1,50,000.

Section – 80CCD:
Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible.
Maximum is sum of employer’s and employee’s contribution to the maximum: 10 % of salary.

Section – 80CCG
Individual having gross total income up to Rs. 12 Lakh can claim this deduction for investing in IPOs of share or mutual fund units. 50 % 0f the invested amount. Limit is Rs. 25,000 max. Note: The deduction is allowed for three years only.

Section – 80D
Medical insurance on self, spouse, children or parents. The deduction is also allowable for CGHS contribution to Central and State scheme. It is also for conducting health check up to Rs 6000.
Rs 15,000 for self, spouse & children. Extra Rs. 15,000 for insurance on parents. IF parents are above 65 years, extra sum should be read as Rs 20,000. Thus maximum is RS 35,000 per annum to a person of age below 60 yrs.

Section – 80DD
For maintenance including treatment or insurance the lives of physical disable dependent relatives
Rs 50,000. In case disability is severe, the amount is Rs 1,50,000. Watch video on 80DD Deduction

Section – 80DDB
For medical treatment of self or relatives suffering from specified disease. Actual amount paid to the extent of Rs 40,000. In case of patient being Sr Citizen, amount is Rs 60,000.

Section – 80E
For interest payment on loan taken for higher studies for self or education of spouse or children. Actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full. Watch the video on 80E.

Section – 80EE
Interest on home loan sanctioned during F. Y. 2013-14. Maximum Rs 1 lakh.  Value of the property should be below Rs 50 Lakh and max loan sanctioned should be Rs 25 lakh. Further Assessee should not have any other residential house.

Section – 80G
:

Donations to charitable institution. 100% or 50% of amount of donation made to 19 entities (National defense fund,Prime minister relief fund etc). For Asst Yr 2014-15, National Children Fund will also get 100% deduction.

Section – 80GG
For rent paid. This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month or Rs.24000/- P.A..

Section – 80GGA:
For donation to entities in scientific research or rural development Fund. Only those tax payers who have no business income can claim this deduction .Maximum is equivalent to 100 % of donation. Note: Cash payment not allowed.

Section – 80GGB & 80GGC
For contribution to political parties 100 % of donations  Note: Cash payment not allowed.

Section – 80TTA

Individual & HUF having interest in Savings Bank Account  Rs 10000 maximum Limit


Section – 80U
Deduction in respect of permanent physical disability including blindness to taxpayer
RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.

Section – 87A

Rebate to individual having low taxable income, Amount of tax or Rs 2,000 which ever is less

Leave a Reply

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