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LTA Leave Travel Allowance Rules-Exemption-Calculation[AY 2019-20]

Leave Travel Allowance (LTA) is an actual expense based allowance provided to an employee for travelling within India during the leave period. It is also referred to as Leave Travel Concession (LTC). This allowance can be in form of: Reimbursement of Travel Expenses, Concession in Tic...


Tax on Gratuity, Exemption Limit and Calculation [AY 2018-19]

Gratuity refers to the money received by an employee from his employer at the time of: Retirement Resignation Termination Death Gratuity is payable only to persons who have been employed for 5 years or more with the employer. In case of death, disease or accident, the time limit of ...


Tax on Leave Encashment: Calculation, Exemption [AY 2018-19]

Employees are allowed to take leave for a fixed number of days throughout a year. These leaves are paid i.e an employee’s salary will not be deducted if he takes leave within the employer’s policy. Depending on the employer’s policy towards leave, in case of non-availment of the fixed le...


Income Tax on Rent Free Accommodation and Calculation

Apart from the fixed salary, employers also provide various perks in form of either good, service or money to their employees such as a car, maid, a house without rent etc. These perks are known as perquisites and it is completely taxable in the hands of the employees as Salary Income. Rent fr...


Online e-File ITR 1: Salary Income with Form 16 [AY 2018-19]

'Online e-File ITR 1: Salary Income with Form 16 [AY 2018-19]'

In this article, we will cover the step by step process to file an online tax return for salaries and pensioner taxpayers in ITR 1 (Sahaj). Who can File ITR 1 Sahaj  ITR 1 Sahaj is for a resident individual having Salary Income Pension income [Considered as salary] Income from one hous...


Section 89: File Form 10E to Claim Tax Relief

Tax rates vary from year to year. Suppose a year's income with low tax rate get taxed in a year of a high tax rate than the taxpayer ends up paying more taxes. Isn't it unfair? To remove this burden from salaried taxpayers a tax relief under section 89 was introduced. Which says that if ...


Standard Deduction in Salary and Pension 2018 [AY 2019-20]

Standard deduction refers to a straight reduction of salary income up to Rs.40,000/-. [Section 16(i)(ia)] In budget 2018, India's government has re-introduced the standard deduction for both salaried and pensioners. This will benefit 2.5 crores assessee and will cost Rs.8,000/- crore to the go...


Section 192: How to Calculate TDS on Salary FY 2017-18 [AY 2018-19]

Every employer should deduct TDS at an average rate of income tax while paying salary to their employees if annual salary payment exceeds Rs.2.5 lakh (for individual below 60 years) or 3 lakh (for individual of 60 years or more but less than 80 years) or Rs.5 lakh (for individual of 80 years or more...


House Rent Allowance(HRA) Deduction, Calculation [AY 2019-20]

'House Rent Allowance(HRA) Deduction, Calculation [AY 2019-20]'

In this article, we will discuss house rent allowance (HRA) deduction and its calculation for an employee. In General, this HRA forms part of the salary. If HRA is not paid by the employer, an employee can still claim HRA exemption u/s 80GG.   What is House Rent Allowance (HRA)? HRA i...


Section 192A : TDS On Employee Provident Fund (PF) Withdrawal

TDS Rate Under Section 192A TDS will be deducted by the trustee of EPF at the following rates if at the time of payment of the accumulated provident fund (PF) balance is Rs.50000/- or more- a) if PAN provided-TDS @ 10% b) if PAN NOT provided- TDS @ 34.608% (Maximum marginal rate)   ...


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