Hi All, Can anyone please share non taxable components as per 2013, because I have heard that few are removed? Thanks in advance! John
From India, Nagpur
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From India, Nagpur
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Non-Taxable Components Overview
The following are non-taxable components, both specific and general:
- House Rent Allowance (HRA)
- Conveyance Allowance
- Foreign Allowance (for government employees serving in other countries)
- Children Education Allowance
- Reimbursements for medical expenses, meal vouchers, gifts, Leave Travel Allowance (LTA), telephone expenses, and travel
- Corporate Mediclaim policy
General Non-Taxable Income
In general, the following are also non-taxable:
- Agricultural income
- Income as a partner in a firm
- Retirement or death benefits such as gratuity and leave salary
- Retrenchment benefits
- Voluntary retirement benefits
- Life insurance policy returns
- Provident Fund
- Superannuation
- Income from government securities
- Scholarships for education
- Awards and rewards given by state or central governments
Thank you.
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187The following are non-taxable components, both specific and general:
- House Rent Allowance (HRA)
- Conveyance Allowance
- Foreign Allowance (for government employees serving in other countries)
- Children Education Allowance
- Reimbursements for medical expenses, meal vouchers, gifts, Leave Travel Allowance (LTA), telephone expenses, and travel
- Corporate Mediclaim policy
General Non-Taxable Income
In general, the following are also non-taxable:
- Agricultural income
- Income as a partner in a firm
- Retirement or death benefits such as gratuity and leave salary
- Retrenchment benefits
- Voluntary retirement benefits
- Life insurance policy returns
- Provident Fund
- Superannuation
- Income from government securities
- Scholarships for education
- Awards and rewards given by state or central governments
Thank you.
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There are some salary components that can be used to save tax for employees. Salary structure differs from organization to organization. Below are some components that are commonly used in industries.
1) **HRA** - Maximum 50% of Basic can be exempted from tax on submission of rent receipt.
2) **Conv. Allowance** - ₹800 per month is exempted from tax.
3) **Telephone Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. Fully exempted from tax on submission of bills. Note all employees should declare that calls were purely made for official purposes only.
4) **Training Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. As per government guidelines, the course or training shall be useful in company profit and growth. Training Reimbursement should not be exempted on periodic journals and the training courses that are a benefit to employees only. Fully exempted from tax on submission of bills only in case the training course is useful for company profit and growth.
5) **Sodexo Meal Coupons** - Part of the Flexible Basket. A maximum of ₹50 per meal is exempted from tax.
6) **Car Fuel** - Part of the Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer), and purpose of travel. Car Fuel attracts perquisites, so should be carefully implemented. An employee can only take either Conv Allowance or Car Fuel. Both cannot be availed at the same time.
7) **Driver Salary** - Part of the Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer), and purpose of travel. Driver Salary attracts perquisites, so should be carefully implemented. Employees availing Conv Allowance should not be allowed to take the benefit of Driver Salary exemption.
8) **Sodexo Gift Vouchers** - Part of the Flexible Basket. A maximum of ₹5000 per year is exempted from tax.
9) **Medical Reimbursement** - Part of the Flexible Basket. A maximum of ₹1250 per month is exempted from tax on submission of bills.
10) **LTA Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. Fully exempted from tax on submission of bills (Only twice in a four-year block).
Regards,
AK Jain
From India, New+Delhi
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1) **HRA** - Maximum 50% of Basic can be exempted from tax on submission of rent receipt.
2) **Conv. Allowance** - ₹800 per month is exempted from tax.
3) **Telephone Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. Fully exempted from tax on submission of bills. Note all employees should declare that calls were purely made for official purposes only.
4) **Training Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. As per government guidelines, the course or training shall be useful in company profit and growth. Training Reimbursement should not be exempted on periodic journals and the training courses that are a benefit to employees only. Fully exempted from tax on submission of bills only in case the training course is useful for company profit and growth.
5) **Sodexo Meal Coupons** - Part of the Flexible Basket. A maximum of ₹50 per meal is exempted from tax.
6) **Car Fuel** - Part of the Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer), and purpose of travel. Car Fuel attracts perquisites, so should be carefully implemented. An employee can only take either Conv Allowance or Car Fuel. Both cannot be availed at the same time.
7) **Driver Salary** - Part of the Flexible Basket. Exempted from tax on submission of bills and depends on CC of car, Owner of car (Employee or Employer), and purpose of travel. Driver Salary attracts perquisites, so should be carefully implemented. Employees availing Conv Allowance should not be allowed to take the benefit of Driver Salary exemption.
8) **Sodexo Gift Vouchers** - Part of the Flexible Basket. A maximum of ₹5000 per year is exempted from tax.
9) **Medical Reimbursement** - Part of the Flexible Basket. A maximum of ₹1250 per month is exempted from tax on submission of bills.
10) **LTA Reimbursement** - Part of the Flexible Basket. There is no upper limit prescribed by the government; however, there should be one firm policy, and the limits per month should be derived as per the employee's grade and designation. Fully exempted from tax on submission of bills (Only twice in a four-year block).
Regards,
AK Jain
From India, New+Delhi
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SALARY CALCULATOR & INCOME TAX.zip
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