Which of the following is exempted from tax?
What are Income Tax Exemptions? Section 10 of the Income Tax Act, 1961, provides an extensive list of tax exemptions that can be claimed for reducing the tax burden. Some of them include House Rent Allowances, Hostel Allowance, Children Education Allowance, Leave Travel Allowances, Gratuity, etc.
What part of income is taxable?
Generally, you must include in gross income everything you receive in payment for personal services. In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options.
What is non-taxable component?
Technically, an untaxed element of a taxable component (untaxed element) includes amounts where the super fund has not paid any tax on the contributions (other than non-concessional) or earnings.
What are non-taxable components in salary?
These are: Allowances paid to Govt. servants abroad: When servants of Government of India are paid an allowance while serving abroad, such income is fully exempt from taxes. Sumptuary allowances: Sumptuary allowances paid to judges of HC and SC are not taxed.
What is tax free salary in India?
Income Tax Slab Rates for FY 2021-22 (AY 2022-23), FY 2022-23 (AY 2023-24) under old tax regime Income tax slab and rates for individuals below 60 yearsUp to Rs 2,50,000NilRs 2,50,001 to Rs 5,00,0005% of (total income minus Rs 2,50,000)Rs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (total income minus Rs 5,00,000)2 more rows
What are taxable and non-taxable components of salary in India?
Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances - as well as arrears for the said head of Pay/Allowances. Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).
Which of the following is not tax free perquisite?
Residence to officials of Parliament, etc.: Rent free furnished residence (including maintenance thereof) provided to an officer of the Parliament, a Union Minister or Leader of Opposition in Parliament, is not a taxable perquisite.
Which part of salary is taxable?
Taxable income or gross income or adjusted gross income includes salaries, wages, bonuses, etc. along with unearned income and investment income. It is the amount that will be used to determine your tax liability.
What are 5 types of income that are not taxable?
Here are 10 more types of non-taxable income. Financial Gifts. Educational and Adoption Assistance from Your Employer. Employer-provided Meals and Lodging. Proceeds from a Home Sale. Insurance Provided by Your Employer. Health Savings Accounts (HSAs) Disability Insurance Payouts. Workers Compensation Benefits.
What is salary paid tax free?
# Salary paid tax free - Tax free salary means the salary on which income tax is borne not by the employee but by the employer. Tax free salary is also taxable in the hands of the employee. Salary is taxable in the year of receipt or in the year of earning of the salary income, whichever is earlier.
