BASIC SALARY

Dearness Allowance (D.A.)

Commission

Bonus

Gratuity

Leave Salary Encashment

Pension

Retrenchment Compensation

VRS

Other Receipts in lieu of Salary

Allowances

Perquisites

MOTI THIRUMALA RAJU

Gross Salary[As per defination u/s17(1)]Basic Salary+Taxable portion of gratuity,pension,LTC,etc+Taxable portion of allowances+Taxable portion of perquisites+Profit in lieu of Salary+Taxable portion of contribution to RPF made by

employerGROSS SALARYLess:Deduction u/s 1616(ii) Entertaintment Allowance16(iii) Professional TaxINCOME FROM SALARY

MOTI THIRUMALA RAJU

Entertainment allowanceThis allowance is applicable to central & state

government employeesDeduction: Lease of following1.50002. 20% of Basic Salary3.Amount Actually received

.Professional Tax[Sec 16(ii)]Deduction is amount actually paid during the

previous year

MOTI THIRUMALA RAJU

Special Allowance( Rule 2BB)

Sec 10(14)(i) Official: The amount given to meet expenses related to employment. The exemption is- Amt of actual expenditure or amount of allowance, whichever is less.

These allowances are Traveling allowance, Daily allowance, Helper allowance, Uniform allowance

MOTI THIRUMALA RAJU

Particular Exemption

Children Education Allowance Rs.100 p.m per child (max 2 children)

Children Hostel Allowance Rs.300 p.m per child (max 2 children)

Allowance for transport sector employees 70% of amount received or Rs.6000pm whichever is less

Transport/Conveyance allowance( for journey between place of duty & residence

Rs.800 pm for general or Rs.1600p.m for handicapped

Mining allowance 800p.m

Tribal Area Allowance 200p.m

Compensatory field re allowance 2600p.m

Compensatory Modified Field Area allowance

1000p.m

Counter insurgency allowance 3900p.m

Underground Allowance 800p.m

MOTI THIRUMALA RAJU

House Rent Allowance

Minimum Of Following Shall Be Exempted u/s 10(13A):1) Actual Received2) 50% or 40% of Salary3) Rent Paid- 10% of Salary

NOTE:1) 50% When house is situated in a metro city, else 40%.2) Salary = Basic+D.A.(if terms so provide)+ turnover based commissionMOTI THIRUMALA RAJU

Any allowance or perquisites paid or allowed outside India by the government to a citizen of India, for rendering services outside India, is fully exempt from tax

Allowances to high court judges u/s 22A(2) of the high court judges Act,1954

Sumptuary allowance given to High court & Supreme court judges

Allowance received by an employer of UNO from hid employer

MOTI THIRUMALA RAJU

GRATUITY sec 10(10)

During Continuation Of Service

On Termination Of Service

Fully Taxable

Fully Exempt

Covered Under PGA

Minimum Of Following Exempted1) Actual Gratuity Received2) Rs. 3,50,000/-3)1/2 month Avg Salary X Completed Year of Service

Minimum Of Following Exempted1) Actual Gratuity Received2) Rs. 3,50,000/-3) P.M. Salary X Completed Year of Service X 15/26

If Non Government Employee

NO

YESYES

NO

Note:* PGA= PAYMENT OF GRATUITY ACT*SALARY= BASIC+D.A.*COMPLETED YEAR includes every completed year & period in excess of 6 months shall be treated as a year

Note:*AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10*COMPLETED YEAR ignores ANYFRACTION

MOTI THIRUMALA RAJU

LEAVE SALARY ENCASHMENT sec10(10AA)

During Continuation Of Service

On Termination Of Service

Fully Taxable

Fully Exempt

Minimum Of Following Exempted1) Actual leave encashment Received2) Rs. 3,00,000/-3) 10 Months Average Salary4) 30 Days Average Salary For Every Completed Year Of Service, Subject To Leaved Availed During The Tenure Of Service.

If Non Government

Employee

NO

YES

Note:*AVG. SALARY= (10 MONTHS BASIC SALARY+D.A.+TURNOVER BASED COMMISSION) / 10 [LAST 10 MONTHS EXACT FROM THE DATE OF RETIREMENT.]*COMPLETED YEAR ignores ANY FRACTION

MOTI THIRUMALA RAJU

PENSION sec10(10A)

UNCOMMUTED PENSION

FULLY TAXABLE

FULLY EXEMPT

ASSESSEE RECEIVED GRATUITY

ONE HALF OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED

ONE THIRD OF TOTAL PENSION COMMUTED SHALL BE EXEMPTED

IF NON GOVERNMENT EMPLOYEE

NO

YESYES

NO

COMMUTED PENSION

MOTI THIRUMALA RAJU

RETRENCHMENT COMPENSATION sec10(10B)

In any other CaseIf Compensation Paid Under Any Scheme

Approved By The Central Government.

Nothing Shall Be Taxable.

MINIMUM OF FOLLOWING SHALL BE EXEMPTEDa) ACTUAL AMOUNT RECEIVEDb) Rs.5,00,000/-c) ANY AMOUNT CALCULATED UNDER INDUSTRIAL DISPUTE ACT,1947 i.e Average of last 3 months8* a5/26 * No of completed years of service and part there in excess of 6 months

MOTI THIRUMALA RAJU

VOLUNTARY RETIREMENT

In any other CaseRECEIVED FROM SPECIFIED EMPLOYERS

MINIMUM OF FOLLOWING SHALL BE EXEMPTEDa) ACTUAL AMOUNT RECEIVED AS PER V.R.S. GUIDELINES* or b)Rs.5,00,000/-

FULLY TAXABLE

GUIDELINES:-a)COMPLETED AGE OF 40 YEARS OR COMPLETED 10 YEARS OF SERVICE (IT IS NOT APPLICABLE ON PUBLIC SECTOR COMPANY)b)THIS IS FRAMED TO REDUCE THE STRENGHT OF EMPLOYEES.c)THE VACANCY CAUSED BY VRS IS NOT TO BE FILLED UP d)THE RETIRING EMPLOYEE IS NOT EMPLOYED IN ANOTHER COMPANY BELONGING TO THE SAME MANAGEMENTe)* THE AMOUNT OF COMPENSATION DOES NOT EXCEED = 3 MONTHS SALARY FOR EACH COMPLETED YEAR OF SERVICE or SALARY AT THE TIME OF RETIREMENT x BALANCE MONTHS OF SERVICE LEFT

# SPECIFIED EMPLOYERS :-a)COMPANY b)LOCAL AUTHORITY c)CO-OPERATIVE SOCIETY d)ANY AUTHORITY ESTABLISHED UNDER CENTRAL/STATE/PROVINCIAL ACTe)SPECIFIED UNIVERSITY f)INDIAN INSTITUTE OF TECHNOLOGY(IIT)g)STATE GOVERNMENT h)CENTRAL GOVERNMENT i)NOTIFIED INSTITUTIONj)NOTIFIED INSTITUTION OF MANAGEMENT (IIM)

MOTI THIRUMALA RAJU

Type of fund

Employer Contribution principal)

Employer’s contribution interest)

Employee's Contribution principal)

Employees Contribution interest)

Amount withdrawn on retirement

SPF Exempt Exempt Deduction u/s 80 c

Exempt Exempt u/s 10(11)

RPF Exempt up to 12% of salary

Exempt up to 9.5%

Deduction us 80 c Exempt up to 9.5%

Exempt subject to condition. If not then RPF treated as URPF

URPF Exempt Exempt No Deduction us 80 c

Exempt Employees contribution exempt. Interest on employee taxable under IOS. Employer contri taxable as salary

PPF NA NA Deduction us 80 c Exempt Exempt

u/s 10(11)

Approved Super annuation fund

Exempt Exempt Deduction us 80 c Exempt Exempt

u/s 10(3)

Approved gratuity fund

Exempt Exempt NA NA Exempt

u/s 10(10)MOTI THIRUMALA RAJU