Understanding Section 10 Exemptions: How Much Can You Claim for HRA and Other Allowances?

Hi,

I need the maximum amount exempted under Section 10 of Form 16 for HRA, Transport Allowance, Medical Allowance, Leave Travel Concession, Petrol Reimbursement, etc.

Regards,
Chintan Shah

Basic: The entire basic salary is taxable.

FBP (Flexible Benefit Plan): FBP can be received as non-taxable provided some allocations are made under various heads from FBP for tax rebate purposes. If you have not allocated anything, you will receive the entire amount in FBP as Personal pay. Once allocation is done, personal pay will be reduced, and the amount so reduced will be accumulated in HRA/CONVEYANCE/MEDICAL/LTA. Out of this, HRA and Conveyance will be paid every month. Medical and LTA will be paid as and when the same is claimed.

The maximum limit you can allocate from FBP is:
- HRA: 40% of basic per month
- Conveyance: Rs 800 per month (if the company is not providing free transport)
- Medical: Rs 15,000/- per annum
- LTA: Rs 40,000/- per annum