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wes2017 Allowances allowable to tax payer ‘Lb Allowances available to different eategories of Tax Payers S.No. Section Particulars Limit of exemption Under the head Salaries Lm Any allowance or perquisite paid or Entire Amount allowed by Government to its ‘employees posted outside India ry * Allowances to Judges of High Exempt, subject to certain Court/Supreme Court conditions. a Compensatory allowance received by a Fully Exempt Judge under article 222(2) ofthe Constitution - Salary and allowances received bya Fully Exempt teacher /professor from SAARC. member state (Subject to certain conditions). 5. 49a) Following allowances and perquisites Fully Exempt ‘given to serving Chairman/Member of ‘UPSC is exempt from tax: 4) Value of rent free official residence 'b) Value of conveyance facilities including transport allowance ©) Sumptuary allowance 4) Leave travel concession 6 lsd Allowances to Retired Exempt subject to Chairman/Members of UPSC maximum oF RS. 14,000 pet month for defraying the services of an orderly and for mesting expenses incured towards secretarial assistant on ‘contract basis. ae Allowances paid by the UNO to its Fully Exempt Individual - employees Government employee 8 L6G Entertainment Allowance received by Leas ofthe following is the Government employees (Fully exempt from tax taxable in case of other employees) @) Rs 5,000 ») Sth of salary (excluding any allowance, benefits or other perquisite) itp incometaxina govinChartsts20%;20Tabes/Alowences Avalon [ay 2017-18] Exemption available to Individual- Salaried ‘Employee (being a citizen of India) Individual - Judges of igh CourvSupreme Court Individual - Judges Individual - Teacher from SAARC member State Individual - ‘Chairman/Member of psc Individual - Retired CChairman/Member of UPSC Individual - Employees of UNO Individual - Government Employee 3 1282017 House Rent Allowance (See. 10(13) & Rule 2A) 10. Hostel Expenditure Allowance ‘Transport Allowance is | ‘employee to meet expenditure on ‘commuting between place of residence, oo Sa 1. ance granted to an employee ig in any transport business 10 ‘meet his personal expenditure during is duty performed in the course of | running of such transport from one place to another place provided ‘employee ig notin receipt of daily allowance. 14, 49a) Conveyance Allowance granted to ‘meet the expenditure on conveyance in performance of duties of an office ipzhwww incometaxincia gov ivChars420%20Tabtes/Nlowances_Avallablehim ‘Alowanoes allowable to tex payer ©) Actual entertainment allowance received Least of the following is ‘exempt: 18) Actual HRA Received 1b) 40% of Salary (50% if house situated in Mumbai, Cateutta, Deli or Madras) ©) Rent paid minus 10% of salary * Salary= Basie +DA (if part of retirement benefit) + Turnover based ‘Commission Note: i. Fully Taxable, i HRA is received by an ‘employee who is living in his own house or ifhe ‘does not pay any rent ii, Ib is mandatory for employee to report PAN of the landlord to the ‘employer if rent pai is ‘more than Rs. 1,00,000 {Circular No. 08 72013 dated 10th October, 2013). Up to Rs. 100 per month per child up to a ‘maximum of 2 children is ‘exempt Up to Rs. 300 per month per child up toa ‘maximum of 2 children is exempt Rs. 3,200 per month for blind, deaf, dumb and handicapped employees) is exempt = Amount of exemption shall be lower of following: 8) 70% of such allowance; or 'b) Rs, 10,000 per month. Exempt tothe extent of ‘expenditure incurred for official purposes Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee a8 sresr201T 15. ous) 16 190) 17 loa) 1. oda 2 yous 3 Seto ‘Sec, 10(14) read with Rule 2BB 5. ‘Sco LOU) 6. ‘Seo. 1014) 7. Sex. 10u14) 8. ‘Sec 10U4) 9. ‘Sec 10(14) ‘Nlowances allowable to tax payer Any Allowance to meet the cost of travel on four or on transfer Daily Allowance to meet the ordinary daily charges incurred by an employee ‘on account of absence from his normal place of duty Helper/Assistant Allowance Research Allowance granted for ‘encouragi other professional pursuits Uniform Allowance Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) Border area allowance Remote Locality or allowance or Disturbed ‘Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (4) Karnataka (e) Tripura () ‘Assam (g) West Bengal (h) Bihar () Orissa (opty Fit Are Allowance, ‘exemption is taken, employee = camo sai any exemption in respect ‘of border area allowance (Subject to certain conditions and locations) ‘Compensatory Modified Arca Allowance. If this exemption is taken, ‘employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) ‘Counter Insurgency Allowance if this exemption is taken, employee cannot claim any exemption in espect of border area allowance (Subject to certain conditions and locations) ‘tpitwww incometaxindia govinharts%.20%20Tebles/Aowances_Avalate im Exemptto the extent of Individual - Salaried expenditure incurred for employee official purposes Exempt to the extent of Individual - Salaried expenditure incurred for employee official purposes Exempt to the extent of Individual - Salaried expenditure incurred for employee official purposes Exempt to the extent of Individual - Sslaried the academic research and expenditure incurred for employee official purposes. Exempt to the extent of Individual - Salaried ‘expenditure incurred for employee official purposes Amount exempt from tax Individual - Salaried varies from Rs. 300 per employee month to Rs. 7,000 per ‘month ‘Amount exempt from tax Individual - Salaried varies from Rs.200 per employee month to Rs. 1,300 per month. Upto Rs. 200 per month Individual - Salaried employee Up to Rs. 2,600 per month Individual - Salaried ‘employee « UptoRS. 1,000 per month Individual - Salaried employee Up to Rs. 3,900 per month Individual - Members of Armed Forces, Up 10 Rs, 800 per month ana vesi2017 Allowances allowable to tax payer ‘Underground Allowance is granted to employees working in uncongenial, ‘unnatural etimate in underground 10. Sec. t0(14) High Altitude Allowance is granted to armed forces operating in high altitude 4) Upto Rs. 1,060 per ‘month (for altitude of areas (Subject to certain conditions and 9,000 to 15,000 feet) locations) UW. Seo,10014) Highly active field area allowance is ‘granted to members of armed forces {Subject to certain conditions and locations) 12 See. 1044) Island Duty Allowance is granted 10 ‘members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations) Be City Compensatory Allowance i Fixed Medical Allowance Is. = ‘Tiffin/LunclvDinner/Refreshment Allowance we Servant Allowance in - Deamess Allowance \ Project Allowance ww - Overtime Allowance ) Up to Rs. 1,600 per ‘month (for altitude above 15,000 feet) Individual employee Individual - Members of ‘Axmed Forces Upto Rs, 4,200 per month Individual - Members of Armed Forces Upto Rs. 3,250 per month Individual - Members of Fully Taxable Fully Taxable Fully Taxable Fully Taxable Fully Taxable Fully Taxable Fully Taxable } Larne a Holiday Allowance er ‘Any Other Cash Allowance B, Under the head Income from house property tp inccmetaxineta govinCharts%20%20Tables/Alowances_Avalittelin Fully Taxable Fully Taxable ‘Armed Forces. Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee Individual - Salaried employee = Individual - Salaried employee Individual - Salaried employee ans vesi2017 Allowances allowable to tax payer Municipal tax levied by local authority Amount actually paid All assessee ‘and borne by owner in respect of house during the relevant property previous year 2 24a) Standard Deduction 30% of the Annual Value All assessee (Gross Annual Value- ‘Municipal Taxes) 3. 24th) Interest incurred on borrowed capital Interest on borrowed All assessee capital is allowed as deduction from income from house property as under: 8) Upto Rs. 2,00,000 (it amount is borrowed for consiruction/acquisition of self-occupied house property on or after 01- (04-1999), subject to certain other conditions ) Up to Rs. 30,000 (it amount is borrowed for reconstruction, repair or renewals of selt-occupied house property) ©) Actual amount of interest paid or payable dating the year (in ease of let-out propery) 4) Pre-construction period interest i allowed in 5 ‘annual equal installments (Subject to certain conditions) Section 25 4 ‘Standard Deduction from arrears of 30% of arrears of rent or All assessee rent or unrealized rent received ‘unrealized rent, subsequently . Under the head Profits and gains from business or profession 1 a Depreciation in respect of: Depreciation shall be ‘Taxpayer engaged in allowed at prescribed business of generation or ') Tangible assets (buildings, percentage on actual cost generation and machinery, plant or furniture); ‘of an asset. distribution of power. ii) Intangible Assets (know-how, However, ifasset is __ Note: : patents, copyrights, trademarks, acquired and put to use ~ licenses, franchises, or any other for less than 180 days Taxpayer engaged in business of commercial rights of during the previous year, » business of generation or similar nature) the deduction shall be generation and restricted to 50% of distribution of power have depreciation computed the option toc above deprecation either on straight line basis or ‘written down value bas 2. 2 Depreciation in respect of: Depreciation shall be All assessees allowed at prescribed . ') Tangible assets (buildings, percentage on written machinery, plant or furniture); down value of each block ntpilww incom ctx gov iniCheris 20%420Tabes/Allowances_ Avaitabe.him sia