Hello Group Members,
I invite you to submit queries on the taxation of various salary components as per the Indian Income Tax Acts. I would also request members to give their advice/views on the subject to help solve the queries.
In my experience, I have found that understanding the taxation of salary components as per the Income Tax Act of India varies among individuals. Therefore, discussing this topic may help people resolve their differences.
My experience is based on a recent query on the forum regarding children's education allowance. Below, I am outlining the correct position on the taxation of children's education allowance as per the Income Tax Act of India.
As per the Income Tax Act of India, the position is as follows:
- Children's education allowance exemption is limited to Rs. 100 per month, per child, up to a maximum of 2 children.
- However, in cases where the child stays in a hostel, a sum of Rs. 300 per month is exempted.
Thank you,
Pankaj Patodi
From India, New Delhi
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3I invite you to submit queries on the taxation of various salary components as per the Indian Income Tax Acts. I would also request members to give their advice/views on the subject to help solve the queries.
In my experience, I have found that understanding the taxation of salary components as per the Income Tax Act of India varies among individuals. Therefore, discussing this topic may help people resolve their differences.
My experience is based on a recent query on the forum regarding children's education allowance. Below, I am outlining the correct position on the taxation of children's education allowance as per the Income Tax Act of India.
As per the Income Tax Act of India, the position is as follows:
- Children's education allowance exemption is limited to Rs. 100 per month, per child, up to a maximum of 2 children.
- However, in cases where the child stays in a hostel, a sum of Rs. 300 per month is exempted.
Thank you,
Pankaj Patodi
From India, New Delhi
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Hello Patodi,
I have a vague understanding of income tax, especially on HRA, COA, and CLA. Please correct me if I am wrong:
1. HRA is a tax-free pay component.
2. CLA - no idea.
3. COA - no idea.
4. If the employee produces receipts of HRA, THAT IS TAX-FREE.
5. Otherwise, it is taxable.
6. If the employee has housing loans up to 1,50,000, it is tax-exempted on the condition that the employee should occupy his own house; otherwise, it is taxable.
7. If the employee has no HRA allowance but still pays rent, then 25% of the salary is exempted under HRA.
I would appreciate it if anybody could clarify the entire picture. Thank you.
From India, Mumbai
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I have a vague understanding of income tax, especially on HRA, COA, and CLA. Please correct me if I am wrong:
1. HRA is a tax-free pay component.
2. CLA - no idea.
3. COA - no idea.
4. If the employee produces receipts of HRA, THAT IS TAX-FREE.
5. Otherwise, it is taxable.
6. If the employee has housing loans up to 1,50,000, it is tax-exempted on the condition that the employee should occupy his own house; otherwise, it is taxable.
7. If the employee has no HRA allowance but still pays rent, then 25% of the salary is exempted under HRA.
I would appreciate it if anybody could clarify the entire picture. Thank you.
From India, Mumbai
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Hi all,
Please find the attachment. This attachment will help you all with salary calculation for tax purposes. If anyone wants more information, you should contact a good salary consultant or your auditor.
Regards,
Kugan Paramasivam
09840485689
From India
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Please find the attachment. This attachment will help you all with salary calculation for tax purposes. If anyone wants more information, you should contact a good salary consultant or your auditor.
Regards,
Kugan Paramasivam
09840485689
From India
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Dear Kugan,
Thank you for your contribution. The file attached has lots of information on the subject. I invite specific questions and special conditions to discuss and find the best answer on the taxation of salary.
Dear Group Members,
It is surprising that the attachment by Kugan has been downloaded 46 times, and no further comments have been added to the thread. We would be happy to see your active participation.
Thanks,
Pankaj
From India, New Delhi
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Thank you for your contribution. The file attached has lots of information on the subject. I invite specific questions and special conditions to discuss and find the best answer on the taxation of salary.
Dear Group Members,
It is surprising that the attachment by Kugan has been downloaded 46 times, and no further comments have been added to the thread. We would be happy to see your active participation.
Thanks,
Pankaj
From India, New Delhi
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Dear All,
I have opened another topic on TDS on salary income issued by the Income Tax Department. I have uploaded the complete circular for the year 2006-07. The circular contains all details of taxable salary, exemptions, rebates, and tax calculations with examples of certain situations to aid better understanding.
You may view the topic.
Thanks,
Pankaj Patodi
From India, New Delhi
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I have opened another topic on TDS on salary income issued by the Income Tax Department. I have uploaded the complete circular for the year 2006-07. The circular contains all details of taxable salary, exemptions, rebates, and tax calculations with examples of certain situations to aid better understanding.
You may view the topic.
Thanks,
Pankaj Patodi
From India, New Delhi
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Thank you for your valuable contribution.
I also have some queries and I would like to post them like you, but I am unable to do so. Could anyone tell me the process of posting queries? I would be very grateful to you.
Waiting for your response or comment on the same.
Regards,
Soma
From India, Mumbai
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I also have some queries and I would like to post them like you, but I am unable to do so. Could anyone tell me the process of posting queries? I would be very grateful to you.
Waiting for your response or comment on the same.
Regards,
Soma
From India, Mumbai
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Dear Kugan,
Thank you a ton for your exhaustive information. I have a query. If you can kindly help me, I am earning 7,20,000 per annum with no salary breakups. Can you please tell me how to design my CTC to get maximum tax benefits? Also, tell me which allowances are non-taxable and to what extent, for example, CCA, etc.
Please do reply soon. If possible, mail me at santijob@gmail.com.
Regards,
Capt Santosh
From India, Mumbai
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Thank you a ton for your exhaustive information. I have a query. If you can kindly help me, I am earning 7,20,000 per annum with no salary breakups. Can you please tell me how to design my CTC to get maximum tax benefits? Also, tell me which allowances are non-taxable and to what extent, for example, CCA, etc.
Please do reply soon. If possible, mail me at santijob@gmail.com.
Regards,
Capt Santosh
From India, Mumbai
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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
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From India, Mumbai
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Please visit our free taxation blog that could help you.
Visit: TaxIndiaUpdates | Service Tax, Central Excise, GST, Income Tax, and Personal Finance.
Thanks,
CA Jitendra Panwar
From India, Bangalore
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Visit: TaxIndiaUpdates | Service Tax, Central Excise, GST, Income Tax, and Personal Finance.
Thanks,
CA Jitendra Panwar
From India, Bangalore
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Tax Planning Tools in India for AY 2016-17: Relevant for Salaried person/Individual Assessee. You may read the full article here: [Tax Planning Tools in India for AY 2016-17](http://www.taxindiaupdates.in/tax-planning-tools/).
CA Jitendra Panwar
From India, Bangalore
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CA Jitendra Panwar
From India, Bangalore
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This website was a lot of fun for me. You are providing a fantastic resource, and you are giving it away for free. Run 3
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I'm sorry, but as a grammar and spelling correction agent, I can't correct the text you provided as it seems to be coding rather than actual written content. If you have any other text or message that needs correction or review, please feel free to share it with me.
From Vietnam, Hanoi
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From Vietnam, Hanoi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
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