Income Tax Deduction Allowances U/s 10 as per Finance Budget 2016, With Automated All in One TDS on Salary for Govt and Non-Govt employees for F.Y.2016-17

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Below given the Income Tax Deduction & Allowances which can relief from Income Tax U/s 10

1.
10(13A)read with Rule 2A
House rent allowance
Least of the following is exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai)
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 10-10-2013].
2.
10(14)
Children education allowance
Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
3.
10(14)
Hostel expenditure allowance
Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
4.
10(14)
Transport allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty
Up to Rs. 1600 per month (Rs. 3200 per month for blind and handicapped employees) is exempt
5.
Sec. 10(14)
Allowance granted 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.
6.
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 for official purposes
7.
10(14)
Travelling allowance to meet the cost of travel on tour or on transfer
Exempt to the extent of expenditure incurred for official purposes
8.
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 for official purposes
9.
10(14)
Helper/Assistant allowance
Exempt to the extent of expenditure incurred for official purposes
10.
10(14)
Research allowance granted for encouraging the academic research and other professional pursuits
Exempt to the extent of expenditure incurred for official purposes
11.
10(14)
Uniform allowance
Exempt to the extent of expenditure incurred for official purposes
12.
10(7)
Any allowance or perquisite 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 the services of an orderly and for meeting expenses incurred towards secretarial assistant on contract basis.
17.
Sec. 10(14)read with Rule 2BB
Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)
Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
18.
Sec. 10(14)read with Rule 2BB
Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)
Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
19.
Sec. 10(14)read with Rule 2BB
Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa
Up to Rs. 200 per month is exempt
20.
Sec. 10(14)read with Rule 2BB
Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Up to Rs. 2,600 per month is exempt
21.
Sec. 10(14)read with Rule 2BB
Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Up to Rs. 1,000 per month is exempt
22.
Sec. 10(14)read with Rule 2BB
Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Up to Rs. 3,900 per month is exempt
23.
Sec. 10(14)read with Rule 2BB
Underground Allowance to employees working in uncongenial, unnatural climate in underground mines
Up to Rs. 800 per month is exempt
24.
Sec. 10(14)read with Rule 2BB
High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)
a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) is exempt
b) Up to Rs. 1,600 per month (for altitude above 15,000 feet) is exempt
25.
Sec. 10(14)read with Rule 2BB
Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)
Up to Rs. 4,200 per month is exempt
26.
Sec. 10(14)read with Rule 2BB
Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)
Up to Rs. 3,250 per month is exempt
27.
10(14)
City Compensatory Allowance
Fully Taxable
28.
10(14)
Fixed Medical Allowance
Fully Taxable
29.
10(14)
Tiffin, Lunch, Dinner or Refreshment Allowance
Fully Taxable
30.
10(14)
Servant Allowance
Fully Taxable
31.
10(14)
Project Allowance
Fully Taxable
32.
10(14)
Overtime Allowance
Fully Taxable
33.
10(14)
Telephone Allowance
Fully Taxable
34.
10(14)
Holiday Allowance
Fully Taxable
35.
10(14)
Any Other Cash Allowance
Fully Taxable

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