PowerPoint Presentation : NON TAXABLE INCOME U/S 10
PowerPoint Presentation : 1. Agriculture Income u/s 10(1) Agriculture Income from a land situated in India which is used for the purpose of agriculture from where the revenue is derived then it is fully exempt in the hands receiver u/s 10(1).
PowerPoint Presentation : 2. Receipt by a member from his HUF u/s 10(2) Any amount received by a member from his HUF out of the estate of income of the HUF is not taxable in the hands of the member u/s 10(2). Dabur’s Family Tree
PowerPoint Presentation : 3. Share of Profit received by a partner from his partnership firm u/s 10(2A) A partner received 3 types of income from his firm a) Salary/Remuneration/Commission/Bonus – taxable in the hands of partner as his business income b) Interest on Capital -- taxable in the hands of partner as his business income c) Share of Profit – Exempt in the hands of partner u/s 10(2A)
PowerPoint Presentation : 4. Leave Travel concession u/s 10(5) Individual Travel Concession From his employer For himself For himself &his family Proceeding on leave Proceeding after retirement or termination of service Any place in India Actual travelling expenditure is exempt
PowerPoint Presentation : Note : 1. Family – Spouse & Children (dependent or independent), Parent, Brother & Sister (dependent) 2. Only 2 children (born on or after 1/10/98) 3. In case of twince – consider only one child 4. Exemption – 2 journey performed in a block of four calendar years commencing from 1986. Rule 2B : Different Situation Amount Exempt By Air Economy class air fare – place of origin & destination (farthest point from origin by the shortest route) By Rail First class A.C. least of – a) shortest route, b) amount spent Other than Air &Rail First class A.C. least of – a) shortest route, b) amount spent Recognized public transport First class A.C. least of – a) shortest route, b) amount spent Not having recognized public First class A.C. transport least of – a) shortest route, b) amount spent
PowerPoint Presentation : 5. Gratuity u/s 10(10) Gratuity Govt. employee Payment of gratuity act-1972 Others (POGA-1972) (Non-govt employees & not covered by POGA) Exempt least of :- 1) Actual Amount Received 2) 15 days salary for every completed year of service Monetary limit-- ` 10,00,000 # Salary = Basic+D.A. # Salary = Last drawn salary #1 month = 26 days # Completed year = in excess of 6 month Exempt least of :- 1)Actual Amount Received 2)½ month average salary for every fully completed 3)Monetary limit- ` 10,00,000 #Salary= Basic+D.A.+Com . #average of last 10 month salary #Year=Only fully completed year Fully exempt
PowerPoint Presentation : 6. Pension u/s 10(10A) Pension Uncommuted Commuted (periodical) (lumpsum) Govt employee Others Received Not Received Gratuity Gratuity FCV = Fully commuted value Fully Taxable (govt/non govt) Fully Exempt 1/3 of FCV is ½ of FCV is Exempt Exempt
PowerPoint Presentation : 7. Leave Salary Encashment u/s 10(10AA) Leave Salary Encashment During continuation of On retirement/termination Employment of employment Govt. employees Others Exempt least of :- Actual Amount Received 10 times average salary Monetary limit- ` . 300,000 # Salary = Basic+DA+Comm. # Average of last 10 months # Year = Only fully completed year Fully Taxable Fully Exempt
PowerPoint Presentation : 8) Amount received from LIC (Life Insurance Policy) u/s 10(10D) Any amount received from LIC towards maturity of policy is fully exempt. For caring and concerned parents like you, the “Professional Education Plan” –PEP- to ensure the fulfillment of your dream of making your child a top professional.
PowerPoint Presentation : 9) Amount received from statutory providend fund & public providend fund u/s 10(11) Any amount received on maturity or withdrawal from SPF account or PPF account is fully exempt u/s 10(11) 10) Amount received from Recognised providend fund u/s 10(12) Any amount received from RPF account on maturity or withdrawal is fully exempt u/s10(12) if an employee has rendered continious services with his employer for 5 years or more. 11) Amount received from an approved superannuation fund u/s 10(13) Any amount received from an approved superannuation fund is fully exempt from tax along with accrued interest there on.
PowerPoint Presentation : 12. House Rent Allowance u/s 10(13A) Exempt least of : a) Actual Amount Received b) Rent Paid – 10% of Salary c) 50% of Salary (for metro cities) OR 40% of Salary (for other cities) Salary = Basic + DA + Commission (on due basis for the period the rented accomodation is occupied by the employee only).
PowerPoint Presentation : 13. Special allowance notified as exempt u/s 10(14) a) conveyance allowance for pursuing academic research & other professional pursuits --- fully exempt (to the extent used for official work). b) Area/Remote Area/Border Area/Hilly Area/Snow Covered Area Allowance – fully exempt unless any exemption amount is not given. c) Tribal Area Allowance – exempt upto rs. 200/-pm max.
PowerPoint Presentation : d) Children Education Allowance Children Education Allowance is exempt up to Rs.100/-pm, per child for maximum 2 children. e) Children Hostel Allowance Children Hostel Allowance is exempt up to Rs. 300/-pm, per child for maximum 2 children. f) Transport Allowance Transport Allowance is exempted up to Rs.800/-pm maximum & in case of physically handicapped, blind etc. it is Rs.1600/-pm maximum.
PowerPoint Presentation : 14. Scholarship u/s 10(16) Any amount received towards scholarship for educational purpose is fully exempt u/s 10(16). 15. Award from Government u/s 10(18) Any award from the government like BharatRatna, Paramveerchakra,etc. is exempt u/s 10(18) Lataji receiving the Bharat Ratna by President K.R.Narayan
PowerPoint Presentation : 16. Income of Minor child u/s 10(32) The income of minor child is to be first clubbed with the income of the parent u/s 64(1A). There after exemption is available to the parent up to Rs.1500/- per child, per year. 17. Dividend u/s 10(34) Any income by way of dividends by an indian company is fully exempt.