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 FULLY TAXABLE COMPONENTS AND ALLOWANCES  FULLY EXEMPTED ALLOWANCES  PARTLY EXEMPTED ALLOWANCES  RETIREMENT BENEFITS  TAXABLE PERQUISITIES.

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Presentation on theme: " FULLY TAXABLE COMPONENTS AND ALLOWANCES  FULLY EXEMPTED ALLOWANCES  PARTLY EXEMPTED ALLOWANCES  RETIREMENT BENEFITS  TAXABLE PERQUISITIES."— Presentation transcript:

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2  FULLY TAXABLE COMPONENTS AND ALLOWANCES  FULLY EXEMPTED ALLOWANCES  PARTLY EXEMPTED ALLOWANCES  RETIREMENT BENEFITS  TAXABLE PERQUISITIES

3 FULLY TAXABLE COMPONENTS AND ALLOWANCES ADVANCE SALARY ARREAR SALARY BASIC SALARY BONUS CITY COMPENSATORY ALLOWANCES COMMISSION AS A FIXED PERCENTAGE ON TURNOVER DEARNESS ALLOWANCE OR PAY ENTERTAINMENT ALLOWANCES

4 FEES FIXED MEDICAL ALLOWANCES FAMILY ALLOWANCE LEAVE ENCASHMENT ALLOWANCE LUNCH / TIFFIN ALLOWANCES MONTHLY OR UNCOMMUTED ALLOWANCE NON – PRACTICING ALLOWANCE OVERTIME ALLOWANCE SERVANT ALLOWANCE WARDEN ALLOWANCE

5  TRAVELLING ALLOWANCE  CONVEYANCE ALLOWANCE  DAILY ALLOWANCE  HELPER ALLOWANCE  ACADEMIC ALLOWANCE  UNIFORM ALLOWANCE

6 ALLOWANCESPURPOSE OF ALLOWANCE EXEMPTION LIMIT

7 ALLOWANCESPURPOSE OF ALLOWANCE EXEMPTION LIMIT

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10 CONDITION DOES NOT LIVE IN HIS OWN HOUSE PAYS RENT IN EXCESS OF 10% OF HIS SALARY FOR HIS RESIDENTIAL ACCOMATION.

11 Amount received during the FY Towards HRA xxxx LESS: EXEMPTION (least of the following) 1. Amount received as HRA 2. 50% of salary (if chennai, mumbai, kolkata and delhi) OR 40% of salary (for other places) 3. Rent paid xxx LESS: 10% of salary (xx) (xxx)

12  BASIC SALARY  DA CONSIDERED FOR RETIREMENT BENEFITS  COMMISSION AS A FIXED PERCENTAGE ON TURNOVER OF EMPLOYEES

13 RETIREMENT BENEFITS GRATUITY SEC10(10) PENSION SEC10(10A) LEAVE ENCASHMENT SEC10(10AA) RETRENCHMENT COMPENSATION SEC 10(10B) VOLUNTARY RETIREMENT COMPENSATIO N SEC10(10C) TAX TREATMENT OF PROVIDENT FUNDS RETIREMENT BENEFITS GRATUITY SEC10(10)

14 RECEIVED BY NON-GOVT EMPLOYEE COVERED UNDER POGA NOT COVERED UNDER POGA RECEIVED BY GOVT EMPLOYEE FULLY EXEMPT

15 When employee is covered under POGA Amount received during the FY Towards GRATUITY xxxx LESS: EXEMPTION (least of the following) 1. Amount received 2. 15/26*last drawn salary *no.of years of completed service 3. Notified limit of Rs.10lakh. (xxx)

16  BASIC SALARY XXXX  DA CONSIDERED FOR RETIREMENT BENEFITS XXXX  COMMISSION AS A FIXED % ON TURNOVER OF EMPLOYEES XXXX SALARY FOR GRATUITY EXEMPTION XXXX

17 When employee is NOTcovered under POGA Amount received during the FY Towards GRATUITY xxxx LESS: EXEMPTION (least of the following) 1. Amount received 2. 1/2*average monthly salary *no.of years of completed service 3. Notified limit of Rs.10lakh. (xxx)

18  BASIC SALARY XXXX  DA CONSIDERED FOR RETIREMENT BENEFITS XXXX  COMMISSION AS A FIXED % ON TURNOVER OF EMPLOYEES XXXX SALARY FOR GRATUITY EXEMPTION XXXX

19 PENSION COMMUTED PENSION UNCOMMUTE D PENSION GOVT EMPLOYEE NON-GOVT EMPLOYEE FULLY TAXABLE GOVT EMPLOYEE NON-GOVT EMPLOYEE EMPLOYEE RECEIVES GRATUITY EMPLOYEE DOES NOT RECEIVE GRATUITY FULLY EXEMPT

20 Commuted pension received xxxx LESS: EXEMPTION 1/3 rd of full value of pension received (xxx)

21 Commuted pension received xxxx LESS: EXEMPTION 1/2* of full value of pension received (xxx)

22 LEAVE ENCASHMENT LEAVE ENCASHMENT ON RETIREMENT GOVT EMPLOYEE NON-GOVT EMPLOYEE LEAVE ENCASHMENT WHILE IN SERVICE FULLY TAXABLE FULLY EXEMPT PARTLY EXEMPT

23 Amount actuallyreceived xxxx LESS: EXEMPTION (least of the following) 1. Amount received 2. average monthly salary *10 months 3. Notified limit of Rs.3lakh. 4. Period of earned leave to the Credit of the employee *average Monthly salary (xxx)

24 (FOR 10 MONTHS)  BASIC SALARY XXXX  DA CONSIDERED FOR RETIREMENT BENEFITS XXXX  COMMISSION AS A FIXED PERCENTAGE ON TURNOVER OF EMPLOYEES XXXX SALARY FOR LEAVE ENCASHMENT XXXX EXEMPTION

25 Amount actually received xxxx LESS: EXEMPTION (least of the following) 1. Amount received 2. Notified limit of Rs.5lakh. 4. Amount determined under the Industrial Disputes Act, 1947 (xxx)

26 Amount actually received xxxx LESS: EXEMPTION (least of the following) 1. Amount received 2. Notified limit of Rs.5lakh. 4. Amount should not exceed higher of the following: a) last drawn salary *3* completed yr of service b) last drawn salary *no. of years of service (xxx)

27  BASIC SALARY XXXX  DA CONSIDERED FOR RETIREMENT BENEFITS XXXX SALARY FOR VLC EXEMPTION XXXX

28 S.NO.STATUTORY PROVIDENT FUND RECOGNISED PROVIDENT FUND UNRECOGNISED PROVIDENT FUND PUBLIC PROVIDENT FUND


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