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Wednesday, March 3, 2010

Understanding Tax



Particulars

Taxable/Non-Taxable

Exemption/Rebate

Limit

Taxable Items:

-

-

-

Basic Pay

Fully Taxable

-

-

Dearness Pay

Fully Taxable

-

-

Grade Pay

Fully Taxable

-

-

Dearness Allowance

Fully Taxable

-

-

House Rent Allowance

Fully Taxable

-

-

City Compensate Allowance

Fully Taxable

-

-

Medical Allowance

Fully Taxable

-

-

Family Planning Allowance

Fully Taxable

-

-

Arrear Amount

Fully Taxable

-

-

Maturity Amount of NSC

Fully Taxable

-

-

Total amount withdrawn from NSS

Fully Taxable

-

-

Transport Allowance

Partially Taxable

Rebate

Maximum upto Rs.15%0 PM

Children Education Allowance

Partially Taxable

Rebate

Maximum upto Rs.100 PM

Deductions:

Less-Allowance U/S 10(13A) Actual Rent Paid

-

Exempt

Actual amount of HRA received or Expenditure on rent in excess of 1/10th of the salary or 50% of Salary, which ever is less Rent Paid

Interest on HBA U/S 24

-

Deduction

Maximum Rs.1,50,000

Reimbursement of Medical Exp. U/S 17(2)V

-

Deduction

Maximum Rs.15,000

U/S 80C

-

Deduction

Maximum Rs.1,00,000

Refund of loan taken for the construction of House

-

Deduction

Maximum Rs.1,00,000

C.P.F / G.P.F

-

Deduction

Maximum Rs.1,00,000

G.I.S

-

Deduction

Actual

LIC Premium

-

Deduction

Maximum Rs.1,00,000

Subscription of N.S.C. / P.P.F

-

Deduction

Maximum Rs.1,00,000

Interest Occurred on investment in N.S.C.

-

Deduction

Maximum Rs.15,000

C.T.D. / L.I.P. / ULIP (Mutual Fund)

-

Deduction

Maximum Rs.1,00,000

Unit Linked Plan

-

Deduction

Maximum Rs.1,00,000

Tuition Fee (Limited to 2 children) & (After XII th full time course)

-

Deduction

Maximum Rs.1,00,000

5 Years Fixed deposit & 5 years time deposit scheme

-

Deduction

Maximum Rs.1,00,000

U/S 80D CCC

-

Deduction

Maximum Rs.10,000

U/S 80CCD

-

Deduction

Maximum 10% of BP & DA (Recruited on or after 1.1.2004)

Medi Claim Premium U/S 80D

-

Deduction

Maximum Rs.15,000 (Other than above Rs.1,00,000)

Premium paid for Self, Spouse & Children

-

Deduction

Maximum Rs.15,000 (other than above Rs.1,00,000)

Premium paid for Parents (If parent is not senior citizen)

-

Deduction

Maximum Rs.20,000 (Other than above Rs.1,00,000)

Premium paid for Parents (If parent is senior citizen)

-

Deduction

Maximum Rs.20,000 (Other than above Rs.1,00,000)

U/S 80DD

-

Deduction

Handicapped dependents :spouse, son / daughter, parents and brother / sister - Deduction Rs.75,000 to Rs.1,00,000

U/S 80DDB

-

Deduction

Maximum Rs.400,00 (other than above Rs.1,00,000)

U/S 80E

-

Deduction

Entire amount (Interest on higher Education/Study loans)

U/S 80 G

-

Deduction

Deduction for contribution to charitable organization

U/S 80U

-

Deduction

Disability Deduction Rs.75,000 to Rs.1,00,000

Tax Relief - Additional savings in Infrastructure Bonds : Rs.20,000

CGHS subscription will be exempted u/s 80D

Source: CGStaffNews