Re: Non Taxable Heads

Hi
Can you please provide non taxable heads under salary
thanks
daisy

HRAExemption

HRAallowance receivedbytheemployee


Actual rentpaid–(10% ofBasic+ D.A.)
Or

50%of (Basic+ D.A.) incasethelocationis(Mumbai,Kolkata,Chennai,Delhi) or40%of (Basic+ D.A.) incaseofother cities.

Whicheverislessoftheabove three.

ConveyanceExemption

MaximumExemptedu/s10uptoRs.9600p.a.
(i.e.@Rs.800 per monthwhenpaidalongwith the salary)

MedicalExemption

MaximumExemptedu/s10uptoRs.15000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1250 per monthwhenpaidalongwith the salary)

EducationExemption:

MaximumExemptedu/s10uptoRs.2400p.a.basedonnoofdependentchildren’s declaredbytheemployee
(i.e.@Rs.200 per monthwhenpaidalongwith the salary)

TelephoneExemption:

MaximumExemptedu/s10uptoRs.18000p.a.basedonthebillsproducedbythe employee
(i.e.@Rs.1500 per monthwhenpaidalongwith the salary)

PetrolandVehicleMaintenanceExemption

ForCar :Rs.1200p.m. * 12months = 14,400
ForDriver :Rs.600p.m. * 12months = 7,200

Dear Vivek,
The way you explained is really good, about non taxble heads for salary employees.
Thank you very much for your useful information.
Regards,
Sravan

Hi
Thanks for your response,
Can you also advise if it is compulsory for a company to issue FORM 16 to employees who do not come under taxable limit?
Will salary slip suffice?
thanks
daisy

Even if the income is below the exemption limit, the individual has to file the returns. for filing the returns, Form 16 is required.

Hi
Thanks for your response
Our CA informed us that salary certificate will do in case of Form 16, for those employees who are below taxable limit, it is right?

Technically org should issue Form 16 to each and every permanent employees irrespective of there salary range coming within whatever band.