salaries 1 till allowances

1www.ngpacollege.com Assessment Year 2013-14 For sms only 9810139214

CHAPTER-3 [INCOME FROM SALARIES] NEERAJ GUPTA CA IPCC TAX CLASSES



ELEMENTS OF SALARY

minimum remuneration payable on monthly basisfully taxable

taxable on receipt basis

fully taxable



fixed sum of money

cash payment

for a particular expenditure



• fully taxable

• irrespective of actual medical expenses incurred by the employee

Medical Allowance

• Exempt up to actual amount received per child

• or Rs. 100 p.m. per child

• up to a maximum of 2 children

• whichever is less

Children education allowance



• Fully taxableDearness Allowance/

Dearness Pay

Types

of

DA

DA [forming part of salary

for the purpose of retirement

benefits]

DA [not forming part of salary]

DA [partially forming part of

salary]



• HRA is exempt to the minimum of the following:

• 50%/40% of salary or

• HRA or

• Rent (-) 10% of salary

House Rent

allowance



SPECIAL

ALLOWANCES

U/S 10(14)

Travelling

allowance/

Transfer

allowanceDaily

allowance

Conveyance

allowance

Helper

allowance

Research

allowance

Uniform

Allowance

Special Allowances are exempt to the extent of official expenditures



• Exemption varies from Rs. 200 per month to Rs. 1,300 p.m.

• depending upon different specified areas.

Border area allowance,

Remote area allowance,

difficult area allowance or

disturbed area allowance

• The exemption is upto Rs. 3,900 per month

Counter –insurgency allowance

salaries 1 till allowances

Education

assessment year

residential status23

residential status1213

taxable residential

salaries residential

regular monthly basis

receipt basis

minimum of following