HRAExemption
HRAallowance receivedbytheemployee
Actual rentpaid–(10% ofBasic+ D.A.)
Or
50%of (Basic+ D.A.) incasethelocationis(Mumbai,Kolkata,Chennai,Delhi) or40%of (Basic+ D.A.) incaseofother cities.
Whicheverislessoftheabove three.
ConveyanceExemption
MaximumExemptedu/s10uptoRs.9600p.a.
(i.e.@Rs.800 per monthwhenpaidalongwith the salary)
MedicalExemption
MaximumExemptedu/s10uptoRs.15000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1250 per monthwhenpaidalongwith the salary)
EducationExemption:
MaximumExemptedu/s10uptoRs.2400p.a.basedonnoofdependentchildren’s declaredbytheemployee
(i.e.@Rs.200 per monthwhenpaidalongwith the salary)
TelephoneExemption:
MaximumExemptedu/s10uptoRs.18000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1500 per monthwhenpaidalongwith the salary)
PetrolandVehicleMaintenanceExemption
ForCar :Rs.1200p.m. * 12months = 14,400
ForDriver :Rs.600p.m. * 12months = 7,200
From India, Madras
2HRAallowance receivedbytheemployee
Or
Actual rentpaid–(10% ofBasic+ D.A.)
Or
50%of (Basic+ D.A.) incasethelocationis(Mumbai,Kolkata,Chennai,Delhi) or40%of (Basic+ D.A.) incaseofother cities.
Whicheverislessoftheabove three.
ConveyanceExemption
MaximumExemptedu/s10uptoRs.9600p.a.
(i.e.@Rs.800 per monthwhenpaidalongwith the salary)
MedicalExemption
MaximumExemptedu/s10uptoRs.15000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1250 per monthwhenpaidalongwith the salary)
EducationExemption:
MaximumExemptedu/s10uptoRs.2400p.a.basedonnoofdependentchildren’s declaredbytheemployee
(i.e.@Rs.200 per monthwhenpaidalongwith the salary)
TelephoneExemption:
MaximumExemptedu/s10uptoRs.18000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1500 per monthwhenpaidalongwith the salary)
PetrolandVehicleMaintenanceExemption
ForCar :Rs.1200p.m. * 12months = 14,400
ForDriver :Rs.600p.m. * 12months = 7,200
From India, Madras
Dear Vivek, The way you explained is really good, about non taxble heads for salary employees. Thank you very much for your useful information. Regards, Sravan
From India, Hyderabad
From India, Hyderabad
Hi Thanks for your response, Can you also advise if it is compulsory for a company to issue FORM 16 to employees who do not come under taxable limit? Will salary slip suffice? thanks daisy
From India, Ahmadabad
From India, Ahmadabad
Even if the income is below the exemption limit, the individual has to file the returns. for filing the returns, Form 16 is required.
From India, Lucknow
From India, Lucknow
Hi Thanks for your response Our CA informed us that salary certificate will do in case of Form 16, for those employees who are below taxable limit, it is right?
From India, Ahmadabad
From India, Ahmadabad
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Taxable Income.doc