Exemption Under Section 10 For Salary

Rent paid less 10 of basic salary da c.

Exemption under section 10 for salary. This is the list of salary allowances exempt under section 10. Section 10 of the income tax act 1961 offers a long list of tax exemptions that are made especially for salaried people. Under section 10 14 i allowances are exempted to the extent of the amount received as allowance or amount spent on certain duties whichever is the lower figure.

Leave travel allowance lta lta is exempt to a certain extent for domestic travel under section 10 5 of income tax. Some of such investments are given below which are eligible for an exemption under section 80c 80ccc and 80ccd 1 up to a maximum of rs 1 5 lakh. Equity linked savings scheme elss.

Salary section 10 cleartax help center. Cash equivalent of unavailed leave calculated on the basis of maximum 30 days leave for every year of actual service rendered. This can range from agricultural to house rent allowance.

40 of salary basic da for non metros and 50 of salary basic da. Under section 10 there are different sub sections that define what kind of income is exempt from tax. Average salary average of salary drawn in the last 10 months immediately preceding the date of retirement.

The exemption under section 10 covers leave travel allowance lta agriculture income life insurance gratuity leave encashment. Many of such tax rebates and exemptions come under section 10 of the income tax act. Daily allowance is given to employees to meet the daily charges incurred when on tour or for the duration of a transfer in the job.

Following are the tax exemptions provided under section 10. Most of the salary allowances received by the employee from the employer are exempt from income tax under section 10. Call for query 918999840812.