Income-tax Act contains provisions for taxability of various allowances received by a taxpayer. These allowances are either in the nature of income which is exempt from tax or is an expenditure which provides weighted deductions to the taxpayer. This list gives a glimpse of tax treatment of various allowances available to a taxpayer.
Allowances available to different categories of Tax Payers [AY 2025-26]
Page Contents
A. Under the head salaries
| S. No. | Section | Particulars | Limit of exemption | Exemption available to |
| 1. | 10(7) | Any allowance or perquisite paid or allowed by Government to its employees posted outside India | Entire Amount | Individual- Salaried Employee (being a citizen of India) |
| 2. | – | Allowances to Judges of High Court / Supreme Court | Exempt, subject to certain conditions. | Individual – Judges of High Court / Supreme Court |
| 3. | – | Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions). | Fully Exempt | Individual – Teacher from SAARC member State |
| 4. | 16 (ii) | Entertainment Allowance received by the Government employees (Fully taxable in case of other employees) | Least of the following is exempt from tax:
a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefits or other perquisite) c) Actual entertainment allowance received |
Individual – Government Employee |
| 5. | 10(13A) | House Rent Allowance (Sec. 10(13A) & Rule 2A) | Least of the following is exempt:
a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary * Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08/2013 dated 10th October, 2013]. |
Individual – Salaried employee |
| 6. | 10(14) | Children Education Allowance | Up to Rs. 100 per month per child up to a maximum of 2 children is exempt | Individual – Salaried employee |
| 7. | 10(14) | Hostel Expenditure Allowance | Up to Rs. 300 per month per child up to a maximum of 2 children is exempt | Individual – Salaried employee |
| 8. | 10(14) | Transport Allowance granted to an employee to meet expenditure for the purpose of commuting between place of residence and place of duty | Rs. 3,200 per month granted to an employee, who is blind or deaf and dumb or orthopedically handicapped with disability of lower extremities | Individual – Salaried Employee |
| 9. | Sec. 10(14) | Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance. | Amount of exemption shall be lower of following:
a) 70% of such allowance; or b) Rs. 10,000 per month. |
Individual – Salaried employee |
| 10. | 10(14) | Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 11. | 10(14) | Any Allowance to meet the cost of travel on tour or on transfer | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 12. | 10(14) | Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 13. | 10(14) | Helper/Assistant Allowance | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 14. | 10(14) | Research Allowance granted for encouraging the academic research and other professional pursuits | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 15. | 10(14) | Uniform Allowance | Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
| 16. | Sec. 10(14) | Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) | Amount exempt from tax varies from Rs. 300 per month to Rs. 7,000 per month. | Individual – Salaried employee |
| 17. | Sec. 10(14) read with Rule 2BB | Border area allowance Remote Locality or allowance or Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) | Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month. | Individual – Salaried employee |
| 18. | Sec. 10(14) | Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Odisha | Up to Rs. 200 per month | Individual – Salaried employee |
| 19. | Sec. 10(14) | Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) | Up to Rs. 2,600 per month | Individual – Salaried employee |
| 20. | Sec. 10(14) | Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) | Up to Rs. 1,000 per month | Individual – Salaried employee |
| 21. | Sec. 10(14) | Counter Insurgency Allowance if this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) | Up to Rs. 3,900 per month | Individual – Members of Armed Forces |
| 22. | Sec. 10(14) | Underground Allowance is granted to employees working in uncongenial, unnatural climate in underground mines | Up to Rs. 800 per month | Individual – Salaried employee |
| 23. | Sec. 10(14) | High Altitude Allowance is granted to armed forces operating in high altitude areas (Subject to certain conditions and locations) | a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)
b) Up to Rs. 1,600 per month (for altitude above 15,000 feet) |
Individual – Members of Armed Forces |
| 24. | Sec. 10(14) | Highly active field area allowance is granted to members of armed forces (Subject to certain conditions and locations) | Up to Rs. 4,200 per month | Individual – Members of Armed Forces |
| 25. | Sec. 10(14) | Island Duty Allowance is granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations) | Up to Rs. 3,250 per month | Individual – Members of Armed Forces |
| 26. | – | City Compensatory Allowance | Fully Taxable | Individual – Salaried employee |
| 27. | – | Fixed Medical Allowance | Fully Taxable | Individual – Salaried employee |
| 28. | – | Tiffin/ Lunch/ Dinner / Refreshment Allowance | Fully Taxable | Individual – Salaried employee |
| 29. | – | Servant Allowance | Fully Taxable | Individual – Salaried employee |
| 30. | – | Dearness Allowance | Fully Taxable | Individual – Salaried employee |
| 31. | – | Project Allowance | Fully Taxable | Individual – Salaried employee |
| 32. | – | Overtime Allowance | Fully Taxable | Individual – Salaried employee |
| 33. | – | Telephone Allowance | Fully Taxable | Individual – Salaried employee |
| 34. | – | Holiday Allowance | Fully Taxable | Individual – Salaried employee |
| 35. | – | Any Other Cash Allowance | Fully Taxable | Individual – Salaried employee |
| 36. | 16(ia) | Standard Deduction | Rs. 50,000 or the amount of salary, whichever is lower | Individual – Salaried Employee & Pensioners |
B. Under the head Income from house property
| 1. | First proviso to section 23(1) | Municipal tax levied by local authority and borne by owner in respect of house property | Amount actually paid during the relevant previous year | All assessee |
| 1A. | 23(5) | No Notional income for house property held as stock-in-trade | Any building and land appurtenant thereto held as stock-in-trade which is not let during the whole or any part of the previous year.
Annual value of such property for the period upto two year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to be Nil. |
All assessee |
| 2. | 24(a) | Standard Deduction | 30% of the Annual Value (Gross Annual Value- Municipal Taxes) | All assessee |
| 3. | 24(b) | Interest incurred on borrowed capital | Interest on borrowed capital is allowed as deduction from income from house property as under:
a) Up to Rs. 2,00,000 (if amount is borrowed for construction / acquisition of self-occupied house property on or after 01-04-1999), subject to certain other conditions b) Up to Rs. 30,000 (if amount is borrowed for reconstruction, repair or renewals of self-occupied house property) c) Actual amount of interest paid or payable during the year (in case of let-out property) d) Pre-construction period interest is allowed in 5 equal annual installments (Subject to certain conditions) Note: With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 30,000 or Rs. 2,00,000, as the case may be. |
All assessee |
| 4. | Section 25A | Standard Deduction from arrears of rent or unrealized rent received subsequently | 30% of arrears of rent or unrealized rent. | All assessee |
C. Under the head Profits and gains from business or profession
| 1. | 32(1) | Depreciation in respect of:
i) Tangible assets (buildings, machinery, plant or furniture); ii) Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature not being goodwill of business or profession) |
Depreciation shall be allowed at prescribed percentage on actual cost of an asset.
However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above. |
Taxpayer engaged in business of generation or generation and distribution of power.
Note: Taxpayer engaged in business of generation or generation and distribution of power have the option to claim depreciation either on straight line basis or written down value basis. |
| 2. | 32(1) | Depreciation in respect of:
i) Tangible assets (buildings, machinery, plant or furniture); ii) Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature not being goodwill of business or profession) |
Depreciation shall be allowed at prescribed percentage on written down value of each block of asset (as per WDV method).
However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above. |
All assessees |
| 3. | 32(1)(iia) | Additional depreciation on new plant and machinery (other than ships, aircraft, office appliances, second hand plant or machinery, etc.) shall be allowed subject to certain conditions. | Additional depreciation to be allowed at 20 % of actual cost of new plant and machinery.
However, if an asset is acquired and put to use for less than 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% would be allowed in the next year. |
All taxpayers engaged in:
a) manufacture or production of any article or thing; or b) generation or transmission or distribution of power (if taxpayer not claiming depreciation on basis of straight line method) |
| 4. | Proviso to Section 32(1)(iia) | Additional depreciation on new plant and machinery (other than ships, aircraft, vehicle, office appliances, second hand plant or machinery, etc.) shall be allowed subject to certain conditions. | Additional depreciation to be allowed at 35 % of actual cost of new plant and machinery.
However, if an asset is acquired and put to use for less than one 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% in next year. |
All taxpayers which set up an undertaking or enterprise for production or manufacture of any article or thing in any notified backward area in the state of Andhra Pradesh, Bihar, Telangana or West Bengal.
Note: 1. Manufacturing unit should be set-up on or after April 1, 2015. 2. New plant and machinery should be acquired and installed on or after April 1, 2015 but before April 1, 2020. |
| 5. | 32AC | Deduction under section 32AC is available if actual cost of new plant and machinery acquired and installed by a manufacturing company after 31-3-2013 but before 1-4-2015 exceeds Rs. 25/100 Crores, as the case may be.(Subject to certain conditions) | 15% of actual cost of new asset acquired and installed | Company engaged in business or manufacturing or production of any article or thing |
| 6. | 32AD | Investment allowance for investment in new plant and machinery (other than ships, aircraft, vehicle, office appliances, second hand plant or machinery, etc.) if manufacturing unit is set-up in notified backward area in the State of Andhra Pradesh, Bihar, Telangana or West Bengal
(subject to certain conditions) |
Investment allowance to be allowed at 15 % of actual cost of new plant and machinery in the year in which such asset is installed. | All taxpayers who acquire new plant and machinery for purpose of setting-up manufacturing unit in notified backward areas in the State of Andhra Pradesh, Bihar, Telangana or West Bengal
Note: 1) New asset should be acquired and installed on or after April 1, 2015 but before April 1, 2020. 2) Manufacturing unit should be set-up on or after April 1, 2015. 3) Deduction shall be allowed under Section 32AD in addition to deduction under Section 32AC if assessee fulfils the specified conditions. |
| 7. | 33AB | Amount deposited in Tea / Coffee/ Rubber Development Account by assessee engaged in business of growing and manufacturing tea / Coffee / Rubber in India | Deduction shall be lower of following:
a) Amount deposited in account with National Bank for Agricultural and Rural Development (NABARD) or in Deposit Account of Tea Board, Coffee Board or Rubber Board in accordance with approved scheme; or b) 40% of profits from such business before making any deduction under section 33AB and before adjusting any brought forward loss. (Subject to certain conditions) |
All assessee engaged in business of growing and manufacturing tea / Coffee / Rubber |
| 8. | 33ABA | Amount deposited in Special Account with SBI/Site Restoration Account by assessee carrying on business of prospecting for, or extraction or production of, petroleum or natural gas or both in India | Deduction shall be lower of following:
a) Amount deposited in Special Account with SBI/Site Restoration Account; or b) 20% of profits from such business before making any deduction under 33ABA and before adjusting any brought forward loss. (Subject to certain conditions) |
All assessee engaged in business of prospecting for, or extraction or production of, petroleum or natural gas or both in India |
| 9. | 35(1)(i) | Revenue expenditure on scientific research pertaining to business of assessee is allowed as deduction (Subject to certain conditions). | Entire amount incurred on scientific research is allowed as deduction.
Expenditure on scientific research within 3 years before commencement of business (in the nature of purchase of materials and salary of employees other than perquisite) is allowed as deduction in the year of commencement of business to the extent certified by prescribed authority. |
All assessee |
| 10. | 35(1)(ii) | Contribution to approved research association, university, college or other institution to be used for scientific research shall be allowed as deduction (Subject to certain conditions) | 100% of sum paid to such association, university, college, or other institution is allowed as deduction. | All assessee |
| 11. | 35(1)(iia) | Contribution to an approved company registered in India to be used for the purpose of scientific research is allowed as deduction (Subject to certain conditions) | 100% of sum paid to the company is allowed as deduction | All assessee |
| 12. | 35(1)(iii) | Contribution to approved research association, university, college or other institution with objects of undertaking statistical research or research in social sciences shall be allowed as deduction (Subject to certain conditions) | 100% of sum paid to such association, university, college, or other institution is allowed as deduction
|
All assessee |
| 13. | 35(1)(iv) read with 35(2) | Capital expenditure incurred during the year on scientific research relating to the business carried on by the assessee is allowed as deduction (Subject to certain conditions) | Entire capital expenditure incurred on scientific research is allowed as deduction.
Capital expenditure incurred within 3 years before commencement of business is allowed as deduction in the year of commencement of business. Note: i. Capital expenditure excludes land and any interest in land; ii. No depreciation shall be allowed on such assets. |
All assessee |
| 14. | 35(2AA) | Payment to a National Laboratory or University or an Indian Institute of Technology or a specified person is allowed as deduction.
The payment should be made with the specified direction that the sum shall be used in a scientific research undertaken under an approved programme. |
100% of payment is allowed as deduction (Subject to certain conditions). | All assessee |
| 15. | 35(2AB) | Any expenditure incurred by a company on scientific research (including capital expenditure other than on land and building) on in-house scientific research and development facilities as approved by the prescribed authorities shall be allowed as deduction (Subject to certain conditions).
Expenditure on scientific research in relation to Drug and Pharmaceuticals shall include expenses incurred on clinical trials, obtaining approvals from authorities and for filing an application for patent. |
100% of expenditure so incurred shall be as deduction.
Note: i. Deduction shall be allowed if company enters into an agreement with the prescribed authority for co-operation in such research and development and fulfils conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such manner as may be prescribed. |
Company engaged in business of bio-technology or in any business of manufacturing or production of eligible articles or things |
| 16. | 35AD | Deduction in respect of expenditure on specified businesses, as under:
a) Setting up and operating a cold chain facility b) Setting up and operating a warehousing facility for storage of agricultural produce c) Building and operating, anywhere in India, a hospital with at least 100 beds for patients d) Developing and building a housing project under a notified scheme for affordable housing e) Production of fertilizer in India (Subject to certain conditions) |
100% of capital expenditure incurred for the purpose of business is allowed as deduction
Note: No deduction of any capital expenditure above Rs 10,000 shall be allowed where such expenditure is incurred in cash. |
All assessee |
| 17. | 35AD | Deduction in respect of expenditure on specified businesses, as under:
a) Laying and operating a cross-country natural gas or crude or petroleum oil pipeline network for distribution, including storage facilities being an integral part of such network; b) Building and operating, anywhere in India, a hotel of two-star or above category; c) Developing and building a housing project under a scheme for slum redevelopment or rehabilitation d) Setting up and operating an inland container depot or a container freight station e) Bee-keeping and production of honey and beeswax f) Setting up and operating a warehousing facility for storage of sugar g) Laying and operating a slurry pipeline for the transportation of iron ore h) Setting up and operating a semi-conductor wafer fabrication manufacturing unit i) Developing or maintaining and operating or developing , maintaining and operating a new infrastructure facility (Subject to certain conditions) |
100% of capital expenditure incurred for the purpose of business is allowed as deduction provided specified businesses commence operations on or after the prescribed dates. | All assessee
Note: Such deduction is available to Indian company in case of following business, namely;- (i) Business of laying and operating a cross-country natural gas or crude or petroleum oil pipeline network (ii) Developing or maintaining and operating or developing, maintaining and operating a new infrastructure facility. No deduction of any capital expenditure shall be allowed in respect of which cash payment is made above Rs. 10,000.
|
| 18. | 35CCC | Expenditure (not being cost of land/building) incurred on notified agricultural extension project for the purpose of training, educating and guiding the farmers shall be allowed as deduction, provided the expenditure to be incurred is expected to be more than Rs. 25 lakhs (Subject to certain conditions). | 100% of the expenditure (Subject to certain conditions) | All assessee |
| 19. | 35CCD | Expenditure incurred by a company (not being expenditure in the nature of cost of any land or building) on any notified skill development project is allowed as deduction (Subject to certain conditions). | 100% of the expenditure (Subject to certain conditions)
Note: (i) No deduction shall be allowed to a company engaged in manufacturing alcoholic spirits or tobacco products. |
Company engaged in manufacturing of any article or providing specified services |
C. Under the head Capital Gain
| Particulars | Section 54 | Section 54B | Section 54D | Section 54EC | Section 54EE |
| Eligible taxpayer | Individual and HUF | Individual and HUF | Any person | Any person | Any Person |
| Capital gains eligible for exemption | Long-term | Short-term or Long-term | Short-term or Long-term | Long-term | Long- term |
| Capital gains arising from transfer of | Residential House property | Agriculture land used by taxpayer or by his parents or HUF for agriculture purposes in last 2 years before its transfer | Compulsory acquisition of land or building forming part of industrial undertaking (which was used for industrial purposes for at least 2 years before its acquisition). | Long-term capital asset (being Land or Building or both) | Any long-term capital asset |
| Assets to be acquired for exemption | One residential house property
Or Two residential house properties Note: With effect from Assessment Year 2020-21, a taxpayer has an option to make investment in two residential house properties in India. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores. |
Agricultural land (may be in urban area or rural area) | Land or building for shifting or reestablishing said industrial undertaking | Bond of NHAI or REC, etc. | Units of such fund as may be notified by Central Government to finance start-ups |
| Time limit for acquiring the new assets | Purchase: within 1 year before or 2 years after date of transfer
Construction: within 3 years after date of transfer |
Within 2 years after date of transfer | Within 3 years from date of receipt of compensation | Within 6 months from date of transfer | Within 6 months after the date of transfer of original asset |
| Exemption Amount | Investment in new assets or capital gain, whichever is lower
Note: if the cost of new asset exceeds Rs. 10 crore, the excess amount shall be ignored and Rs. 10 crore shall be taken into consideration |
Investment in agricultural land or capital gain, whichever is lower | Investment in new assets or capital gain, whichever is lower | Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs in a financial year. | Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs. |
| Withdrawal of exemption | If new asset is transferred within 3 years of its acquisition | If new asset is transferred within 3 years of its acquisition | If new asset is transferred within 3 years of its acquisition | If new asset is transferred or it is converted into money or a loan is taken on its security
within 5 years of its acquisition |
If new asset is transferred within a period of 3 years from the date of its acquisition.
Note: Where assessee takes loans or advance on security of such specified asset, he shall be deemed to have transferred such asset on the date on which such loan or advance is taken. |
| Deposit in Capital gains deposit scheme before due date under Sec. 139(1) | Yes | Yes | Yes | No | No |
–
| Particulars | Section 54F | Section 54G | Section 54GA | Section 54GB |
| Eligible taxpayer | Individual and HUF | Any person | Any person | Individual and HUF |
| Capital gains eligible for exemption | Long-term | Short-term or Long-term | Short-term or Long-term | Long-term |
| Capital gains arising from transfer of | Any long term asset (other than a residential house property) provided on date of transfer taxpayer does not own more than one residential house property (except the new house) | Land, building, plant or machinery, in order to shift industrial undertaking from urban area to rural area. | Land, building, plant or machinery, in order to shift industrial undertaking from urban area to SEZ. | Residential property (house or a plot of land)
Note: Provisions of this section shall not apply to any transfer of residential property made after March 31, 2017. However, in case of an investment in eligible start-up, the residential property can be transferred up to March 31, 2022. |
| Assets to be acquired for exemption | One residential house property | Land, building, plant or machinery, in order to shift industrial undertaking to rural area. | Land, building, plant or machinery, in order to shift industrial undertaking to SEZ. | Subscription in equity shares of an eligible company.
Note: 1. W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company. 2. The eligible company should utilize the amount of subscription for purchase of new assets (i.e., plant and machinery except vehicle, office appliances, computer or computer software etc.). However, In the case of eligible startup, the new asset shall include computers or computer software. |
| Time limit for acquiring the new assets | Purchase: within 1 year before or within 2 years after date of transfer
Construction: within 3 years after date of transfer |
within 1 year before or 3 years after date of transfer | Within 1 year before or within 3 years after date of transfer | Investment by the assessee – Before due date for furnishing of return under Sec. 139(1).
Investment by the company – within 1 year from date of subscription. |
| Exemption Amount | Investment in new assets X capital gain / net consideration
Note: if the cost of new asset exceeds Rs. 10 crore, the excess amount shall be ignored and Rs. 10 crore shall be taken into consideration |
Investment in new assets or capital gain, whichever is lower | Investment in new assets or capital gain, whichever is lower | Investment in new assets X capital gain / net consideration |
| Withdrawal of exemption | a) If new asset is transferred within 3 years of acquisition,
b) if another residential house is purchased within 2 years of transfer of original asset; c) if another house is constructed within 3 years of transfer of original asset |
If new asset is transferred within 3 years of acquisition | If new asset is transferred within 3 years of acquisition | If equity shares in company or new asset acquired by company is sold or transferred within a period of 5 years from date of acquisition.
Note: w.e.f. Assessment Year 2020-21, the restriction on the transfer of new asset is reduced to 3 years in case of computer or computer software. |
| Deposit in Capital gains deposit scheme before due date under Sec. 139(1) | Yes | Yes | Yes | Yes |
Capital Gain Account Scheme 1988
a) The scheme is open to all taxpayers, who wish to claim exemption under Sections 54, 54B, 54D, 54F, 54Gor 54GB.
b) If taxpayer could not invest the capital gains to acquire new asset before due date of furnishing of return, the capital gains can be deposited before due date for furnishing of return of income in deposit account in any branch of a nationalized bank in accordance with Capital Gain Account Scheme 1988.
c) w.e.f. Assessment Year 2024-25, if the capital gains deposited in the Capital Gains Scheme Account (CGSA) exceed Rs. 10 crores, the excess amount shall not be taken into account while computing capital gain exemption under section 54.
d) w.e.f. Assessment Year 2024-25, where the net consideration deposited in the CGSA exceeds Rs. 10 crores, the excess amount shall not be taken into account while computing capital gain exemption under section 54F
| E. Under the head Income from other sources | ||||
| 1. | 56(2)(vii) | Any sum of money or immovable property or movable property received without consideration or for inadequate consideration from a relative or member of HUF (subject to certain conditions and circumstances) [on or after 01-10-2009 but before 01-04-2017] | The whole amount received from specified relatives or in specified circumstances shall not be included in taxable income. | Individual and HUF |
| 1A. | 56(2)(x) | Any sum of money or immovable property or movable property received without consideration of for inadequate consideration*** from any person. [on or after 01-04-2017]
*** in case of immovable property, ‘inadequate consideration’ shall mean difference between stamp duty value and actual consideration, if it exceeds Rs. 50,000 or amount equal to 10% of consideration, whichever is higher. Note: (1) Any sum of money received by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any member of his family in respect of any illness related to COVID-19, shall not be considered as income of such person. (subject to certain conditions) (2) Any sum of money received by family member of a person who died due to COVID-19, the money so received shall not be considered as income of the family member where such money is received from the employer of deceased person. Where the money is received from any other person or persons, the exemption amount shall be limited to Rs. 10 lakh in aggregate. (subject to certain conditions) |
The whole amount received from specified relatives or in specified circumstances shall not be included in taxable income. | Any person |
| 2. | 57(iia) | Standard Deduction for family pension | 33.33% of Family Pension subject to maximum of Rs. 15,000 | Individual |
[As amended by Finance Act, 2024]
(Republished with Amendment, Source -Income Tax Website)
Sir Allowance termed as “FIRE FIGHTING allowance” can it be exempted under any section under income tax pl. clarify
Regards
ABHAY KUMAR SINGH
Kindly intimate, how many %age for exemption in Risk and hard ship allowances.
Sir
Allowance termed as “Telephone allowance” can it be exempted under any section under income tax if proper bills or document proof is submitted ?
pl. clarify
Regards
Raghuram R
What is the maximum limit for washing allowance to give high skilled employees?? our employee’s salary are 23000 to 28000 gross and we want to deduct ESIC, but max cab is 21000 than, is it possible to deduct esic from their salary ?? i need your legal and professional advice.
My wife receives uniform allowance and bauf( body and uniform) allowance both separately
Please guide me a its tax treatment.
Academic Allowance Rs-22500/-p.m. & Learning Resource Allowace Rs.1,50000/-p.a. comes in tax exemption or not?
I purchased an old flat recently. I am a housewife having income from fishpond.
The fish ponds leased.
Kindly clarify
1. Is the income on fish ponds exempted from I income tax.
2. Is the expenditure on repairs and maintenance exempted from income tax . If so details please
is flying allowance/risk allowance paid to pilots/submariners/divers in navy taxable
Hi
I am an employee in a private organization. This year my organization has deducted a security deposit equal to the salary of two months. My quiry is that am I liable to pay TDS on the salary of two months which is lying as security deposit with my employer or I have to pay TDS on the salary of 10 months which is actually I am getting this financial year.
Dear Sir,
Please suggest
*arrears of counter insurgency allowance under section 10(14)ii is fully taxable or taxable with some exemption. if exemption is available then how to claim that exemption.
Regards
Deepak Chauhan
Kindly let me know if pilotage amount received by a navigation officer in Indian Navy (Central govt) , is taxable? As it’s not a monthly salary but a kind of an allowance received by navigation officer for sailing.. Kindly confirm, please
Please, confirm, whether Ration Money allowance paid to CAPF personnel in lieu of free ration are taxable or not. if not kindly attache order copy.
Conveyance allowance for the assessment year 2020-21 exempted or not for salaried employed
THIS CONTENT IS VERY USEABLE FOR IT CALCULATION IN INDIVIDUALS OF INDIA AND ABROAD THANKS FOR YOUR BEST WORK WITH WARM REGARDS
Army Personals will get Ration money monthly 3300/- will it be exempted fully from income tax? if yes under which section ?
please clarify the same.
under what provisions of law
3. – Compensatory allowance received by a Judge under article 222(2) of the Constitution Fully Exempt Individual – Judges
I need legal provisions regarding it
FY 18-19 HOW MUCH AMOUNT DEDUCTED FOR THE MANIPUR STATE FOR THE BELOW MENTIONED ITEAMS 1) COMPENSATORY MODIFIED FIELD AREA ALLOWANCE 2) PROJECT ALLOWANCE 3) CONVEYANCE EXEMPTION
please send me the details
chhattisgarh State Power Company me conveyance/compensatory allowance milta hai. jisme tax lagela ya nahi. please reply
Sir,
Please let me know if munsif judge can deduct the conveyance allowance and sanctuary allowance from income tax calculation.
is monthly maintenance allowance directly deducted and diverted by the employer (army authorities) from monthly salary of husband (army personnel) and paid to his wife, exempted from deduction of tax in respect of husband and if yes, under which provisions/act/section of law. please reply urgently.
Sir,
I would like to know regading the exemptions under NPS Tax Benefits and sections 80CCD(1), 80CCD(2) and 80CCD(1B)
1.If i have a total nps contribution of Rs 80000,and LIC Rs.60000,PPf :Rs.50000 i.e. total is RS 190000 and exxemption under 80 C :-150000,then the rest Rs.40000 can be shown in 80CCD(1B) or not
or 80CCD(1B) will only consider the voluntary contribution by the employee upto Rs 50000.
2.What is the exemption for TA & SDA & HCA for the A.Y.2018-19
I am a govt. employee and drawing ration money allowance. Is ration money allowance exempted from income tax. If yes under which section?
I am a salaried person and get Rs. 30000/- PA as conveyance allowance. Distance of my office to home is 20 KM approx. Thus my annual expenditure on conveyance is Rs.40000 to Rs.45000.
Is above conveyance allowance exempt from income tax ?
any judges is exeption sumpatory allowance and medical allowance and Compensatory allowance and surrender leave and additional pay
please clearified
Whether exemptor not the property tax deposited
In municipal committee
How can I get tax exemption on mess/food money. Say which rules& clauses.
How can I get tax exemption on mess/food money. Mentioned the tax rules& clauses
I have a query
I get fixed allowance of Rs 800 per month towards news papers etc. I work in Bank. To keep my self abrest with happenings in Financial Sector, I need to read news papers. I purchase news papers worth 500/- every month.
Can I decuct/ claim expenses for the news papers purchased. If yes, how Can I do It?
Dear Sir,
I have a will from my father.
based on the will i got my name endorsed in Water, electricity and MCD records.
HOw this property is taxed or to be declared?
Sir, I am grateful to you bringing out a comprehensive article . But whether are any exemptions available for pensioners?
CAN I GET THE EXEMPTION OF Distinguish SEWA AWARD IF I GET A CASH INCENTIVE FROM MY EMPLOYER FOR SPECIFIC SEWA KINDLY SUGGEST ME BETTER VIkrant bhardwaj
If a person is not being paid any LTA, can IT exemption be claimed for the expenditure incurred by him from his own take home pay to travel on a holiday?
Can a salaried person claim exemption of Transport Allowance as well as Conveyance Allowance for the Assessment year 2017-18
It is requested to I am working in Anti Corruption Bureau, Telangana I am receiving special pay 30% of basic pay, this special pay is taxable or exempted as per the Income Tax ACt.
I was sponsored by Company A for a academic program under a 2 year bond, now i want to join company B which is ready to pay this amount to me so that i can return to company A. Company B is deducting TDS on the payout and not treating it as reimbursement under Section 10 Rule 2BB since the fee was paid to the institute directly by company A.
What are the conditions to avail the above clause, can this be transferred from old employer to new employer.
Please guide me in this case.
Please let me know if Government Engg colleges and polytechnics are exempted from the Income tax.
came to know that military service pay is non taxable.. is it true ..comment please
pls send me details about exemption for veterinary product under vat, ST, and income tax act if any