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COMPUTATION OF INCOME FROM SALARY. www.knowyourwealth.in. COMPONENTS OF SALARY. FULLY TAXABLE COMPONENTS AND ALLOWANCES FULLY EXEMPTED ALLOWANCES PARTLY EXEMPTED ALLOWANCES RETIREMENT BENEFITS TAXABLE PERQUISITIES. www.knowyourwealth.in. COMPONENTS OF SALARY.
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COMPUTATION OF INCOME FROM SALARY www.knowyourwealth.in
COMPONENTS OF SALARY • FULLY TAXABLE COMPONENTS AND ALLOWANCES • FULLY EXEMPTED ALLOWANCES • PARTLY EXEMPTED ALLOWANCES • RETIREMENT BENEFITS • TAXABLE PERQUISITIES www.knowyourwealth.in
COMPONENTS OF SALARY FULLY TAXABLE COMPONENTS AND ALLOWANCES • ADVANCE SALARY • ARREAR SALARY • BASIC SALARY • BONUS • CITY COMPENSATORY ALLOWANCES • COMMISSION AS A FIXED PERCENTAGE ON TURNOVER • DEARNESS ALLOWANCE OR PAY • ENTERTAINMENT ALLOWANCES www.knowyourwealth.in
FEES • FIXED MEDICAL ALLOWANCES • FAMILY ALLOWANCE • LEAVE ENCASHMENT ALLOWANCE • LUNCH / TIFFIN ALLOWANCES • MONTHLY OR UNCOMMUTED ALLOWANCE • NON – PRACTICING ALLOWANCE • OVERTIME ALLOWANCE • SERVANT ALLOWANCE • WARDEN ALLOWANCE www.knowyourwealth.in
FULLY EXEMPTED ALLOWANCES (sec.10(14) RULE 2BB) • TRAVELLING ALLOWANCE • CONVEYANCE ALLOWANCE • DAILY ALLOWANCE • HELPER ALLOWANCE • ACADEMIC ALLOWANCE • UNIFORM ALLOWANCE www.knowyourwealth.in
PARTLY EXEMPTED ALLOWANCES (sec.10(14) RULE 2BB) www.knowyourwealth.in
HOUSE RENT ALLOWANCE U/S 10(13A)/ RULE 2A CONDITION • DOES NOT LIVE IN HIS OWN HOUSE • PAYS RENT IN EXCESS OF 10% OF HIS SALARY FOR HIS RESIDENTIAL ACCOMATION. www.knowyourwealth.in
COMPUTATION OF TAXABLE HRA Amount received during the FY Towards HRA xxxx LESS: EXEMPTION (least of the following) • Amount received as HRA • 50% of salary (if chennai, mumbai, kolkata and delhi) OR 40% of salary (for other places) 3. Rent paid xxx LESS: 10% of salary (xx) (xxx) www.knowyourwealth.in
COMPUTATION OF SALARY FOR HRA • BASIC SALARY • DA CONSIDERED FOR RETIREMENT BENEFITS • COMMISSION AS A FIXED PERCENTAGE ON TURNOVER OF EMPLOYEES www.knowyourwealth.in
RETIREMENT BENEFITS RETIREMENT BENEFITS GRATUITY SEC10(10) GRATUITY SEC10(10) TAXTREATMENT OF PROVIDENT FUNDS PENSION SEC10(10A) VOLUNTARYRETIREMENT COMPENSATION SEC10(10C) LEAVE ENCASHMENT SEC10(10AA) RETRENCHMENT COMPENSATION SEC 10(10B) www.knowyourwealth.in
GRATUITY SEC10(10) www.knowyourwealth.in
GRATUITY SEC10(10) When employee is covered under POGA Amount received during the FY Towards GRATUITY xxxx LESS: EXEMPTION (least of the following) • Amount received • 15/26*last drawn salary *no.of years of completed service 3. Notified limit of Rs.10lakh. (xxx) www.knowyourwealth.in
COMPUTATION OF SALARY FOR TAXABLE GRATUITY • BASIC SALARY XXXX • DA CONSIDERED FOR RETIREMENT BENEFITS XXXX • COMMISSION AS A FIXED %ON TURNOVER OF EMPLOYEES XXXX SALARY FOR GRATUITY EXEMPTION XXXX www.knowyourwealth.in
GRATUITY SEC10(10) When employee is NOTcovered under POGA Amount received during the FY Towards GRATUITY xxxx LESS: EXEMPTION (least of the following) • Amount received • 1/2*average monthly salary *no.of years of completed service 3. Notified limit of Rs.10lakh. (xxx) www.knowyourwealth.in
COMPUTATION OF SALARY FOR TAXABLE GRATUITY • BASIC SALARY XXXX • DA CONSIDERED FOR RETIREMENT BENEFITS XXXX • COMMISSION AS A FIXED % ON TURNOVER OF EMPLOYEES XXXX SALARY FOR GRATUITY EXEMPTION XXXX www.knowyourwealth.in
PENSION SEC10(10A) PENSION UNCOMMUTED PENSION COMMUTED PENSION GOVT EMPLOYEE NON-GOVT EMPLOYEE GOVT EMPLOYEE NON-GOVT EMPLOYEE FULLY EXEMPT EMPLOYEE RECEIVES GRATUITY EMPLOYEE DOES NOT RECEIVE GRATUITY FULLY TAXABLE www.knowyourwealth.in
COMPUTATION OF TAXABLE COMMUTED PENSION Commuted pension received xxxx LESS: EXEMPTION 1/3rdof full value of pension received (xxx) www.knowyourwealth.in
COMPUTATION OF TAXABLE COMMUTED PENSION Commuted pension received xxxx LESS: EXEMPTION 1/2* of full value of pension received (xxx) www.knowyourwealth.in
LEAVE ENCASHMENT U/S10(10AA) FULLY EXEMPT PARTLY EXEMPT www.knowyourwealth.in
COMPUTATION OF TAXABLE LEAVE SALARY ON RETIREMENT Amount actuallyreceivedxxxx LESS: EXEMPTION (least of the following) • Amount received • average monthly salary *10 months 3. Notified limit of Rs.3lakh. 4. Period of earned leave to the Credit of the employee *average Monthly salary (xxx) www.knowyourwealth.in
COMPUTATION OF SALARY FOR TAXABLE LEAVE ENCASHMENT (FOR 10 MONTHS) • BASIC SALARY XXXX • DA CONSIDERED FOR RETIREMENT BENEFITS XXXX • COMMISSION AS A FIXED PERCENTAGE ON TURNOVER OF EMPLOYEES XXXX SALARY FOR LEAVE ENCASHMENT XXXX EXEMPTION www.knowyourwealth.in
RETRENCHMENT COMPENSATION U/S10(10B) Amount actually received xxxx LESS: EXEMPTION (least of the following) • Amount received • Notified limit of Rs.5lakh. 4. Amount determined under the Industrial Disputes Act, 1947 (xxx) www.knowyourwealth.in
VOLUNTARY RETIREMENT COMPENSATION U/S10(10C) Amount actually received xxxx LESS: EXEMPTION (least of the following) • Amount received • Notified limit of Rs.5lakh. 4. Amount should not exceed higher of the following: a) last drawn salary *3* completed yr of service b) last drawn salary *no. of years of service (xxx) www.knowyourwealth.in
COMPUTATION OF SALARY VOLUNTARY RETIREMENT COMPENSATION • BASIC SALARY XXXX • DA CONSIDERED FOR RETIREMENT BENEFITS XXXX SALARY FOR VLC EXEMPTION XXXX www.knowyourwealth.in
TAX TREATMENT OF PROVIDENT FUNDS www.knowyourwealth.in
