Hellow Group Members,
I invite you to submit query on taxation of varius salary components as per Indian Income Tax Acts. I would also request members to give their advice/ view on the subject in order to solve the query.
This is my experience that understanding on taxation of salary components as per income tax act of india differs with person and therefore this topic may be helping people to resolve the differences.
My experience is based on the recent query on the forum in terms of children education allowance and I am reproducing below the correct position on taxation of children education allowance as per I Tax Act of India.
As per income tax act of india, the position is as follows
Children education allowance exemption is limited to Rs 100/- per month, per child to a maximum of 2 childs.
However in case the child stays in a hostel, then a sum of Rs 300/- per month is exempted.
Pankaj Patodi

From India, New Delhi
Tax Consultant
Asst. Manager Finance & Admin
Sap Hr Functional Consultant
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hello patodi
i have vague understanding on income tax especially on HRA,COA,CLA.
please correct me if i am wrong
1.HRA is tax free pay component.
2.CLA --- no idea
3.COA ----no idea
4.if the employee produces receipt of HRA THAT IS TAX FREE
5.other wise it is taxable
6.if the emp has housing loas up to 1,50,000 is tax exempted on condition ;the employee should occupy his own house
7. otherwise taxable
8.if the employee has no hra allowence still pays rent then 25% of sal is exempted under hra.
i will appreciate if anybody clarifies the entire picture.

From India, Mumbai

Hi all,
Pls find the attachment.
This attachment will help you all on the salary calculation for tax purpose.
any one want more than this you have to contact a good salary consultant or your auditor.
Kugan Paramasivam

From India

Attached Files (Download Requires Membership)
File Type: doc salary_148.doc (75.0 KB, 2165 views)


Dear Kugan,
Thank for your contribution. The file attached have lots of information on the subject.
I invite specific question and special conditions to discuss and find the best answer on taxation of salary.
Dear Group Members,
This is surprising that the attachment by Kugan has been downloaded by 46 times and no further comment has been added to the thread. We would be happy to see your active participation.

From India, New Delhi

Dear All,
I have opened another topic on TDS on salary income- issued by Income tax department.
I have uploaded the complete circular for the year 2006-07.
The circular is having all details of taxable salary, exemptions, rebates and tax calculations with examples on certain situations to understand better.
You may view the topic.
Pankaj Patodi

From India, New Delhi

Thanks for ur valuable contribution.

I also have some queries & i also want to post my queries like u but i am unable to do that. Could any one tell me the process of posting queries. I will be very greatful to u.

waiting for ur response or comment. on same.

From India, Mumbai
dear kugan
thanx a ton for your exhaustive information.
i have a querry if u can kindly help me... i am earning 7,20,000 per annum with no salary break ups.... can u please tell me as to how design my CTC as to get maximum tax benefit.
also tell me what are the allowances which are non taxable and to what extent... for eg. CCA etc.
please do reply soon..... if possible mail me at
Capt Santosh

From India, Mumbai
dear soma u’ll get a link(box) stating add comment/ post new comment on the lower side of this page clik and use this link regards Capt santosh
From India, Mumbai

Please visit our free taxation blog which could help you
visit:TaxIndiaUpdates | Service Tax, Central Excise, GST, Income Tax and Personal Finance
CA Jitendra Panwar

From India, Bangalore

TAX PLANNING TOOLS IN INDIA FOR AY 2016-17: Relevant for Salaried person/Individual Assessee. You may read full article here...Tax Planning Tools in India For AY 2016-17
CA Jitendra Panwar

From India, Bangalore

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