What is exemptions under section 17 in income tax?
Section 17(1) of the Income tax Act gives an inclusive and not exhaustive definition of “Salaries” including therein (i) Wages (ii) Annuity or pension (iii) Gratuity (iv) Fees, Commission, perquisites or profits in lieu of salary (v) Advance of Salary (vi) Amount transferred from unrecognized provident fund to …
Which are the perquisites exempt from income tax?
An insurance premium paid by an employer on an accident policy taken out for the employee is a tax-free perquisite. Also, employers contribution to the superannuation fund of the employee provided such contribution does not exceed Rs. 1,50,000 per employee per year can be treated as a tax-free perquisite.
What is the exemption limit under Income Tax Act?
Income tax slab for Individual aged above 60 years to 80 years
| Income Tax Slab | Tax Slabs for Senior Citizens (Aged 60 Years But Less Than 80 Years) |
|---|---|
| Rs 0-.00- Rs. 3.00 lakh | NIL |
| Rs 3.00 lakh- Rs 5.00 Lakh | 5% |
| Rs 5.00 lakh – Rs 10 Lakh | 20% |
| > Rs 10 Lakh | 30% |
What is the section 17 1?
According to Section 17(1) salary includes the following amounts received by an employee from his employer, during the previous year : Wages; the contribution made by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in Section 8OCCD.
What is profits in lieu of salary u/s 17 3?
The amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto is regarded as profits in lieu of salary.
What are Section 10 exemptions?
Exemptions under Section 10 of Income Tax Act
| Section and Sub-section | Category | Exemption |
|---|---|---|
| 10(1) | Self-employed agricultural income | No tax |
| 10(2) | Income of a member of Hindu –undivided Family | No tax |
| 10(10C) | Voluntary retirement compensation | Exempt up to Rs. 5 lakh |
| 10(10D) | Life insurance benefit including bonus | No tax |
What are fully exempted perquisites?
Fully Exempt Perquisites Subsidized lunch or dinner provided by the employer. This includes amount paid for refresher management course including expenses on boarding and lodging. Funds include Recognised Provident Fund, Approved Superannuation Fund or Deposit-linked insurance fund.
What is exemption limit?
Therefore, under the new tax regime, basic exemption limit will remain Rs 2.5 lakh for all taxpayers.” Under the existing tax regime, the basic tax exemption limit for an individual depends on their age and residential status. According to their age, resident individual taxpayers are divided into three categories: 1.
What is the maximum exemption limit?
The maximum exemption limit for an individual and HUF is Rs. 250000. However, for senior citizen of age 60 years or more but less than 80 years is Rs. 300000 and for 80 years or above it is Rs.
Which is exemption under Section 17 ( 2 ) of IT Act?
Income Tax Medical Bills Exemption under Section 17 (2) One such exemption is medical allowance. It is an allowance that is provided for under section 17(2) of the IT Act and states that an employee can submit bills to the employers for medical treatment undertaken by them of their family members. Once the bills are submitted,…
What are the perquisites under Section 17 of the Act?
Under the Act, the term “perquisites” is defined by section 17 (2) as including the following items: the value of rent-free accommodation provided to the assessee by his employer
What are the perquisites of the Income Tax Act 1961?
Section 17 (2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i) the value of rent-free accommodation provided to the assessee by his employer; (ii) the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer;
When did income tax exempt medical bills in India?
Income Tax Medical Bills Exemption under Section 17(2) The Income Tax Act of India was established in India in the year 1961 as the guiding principle for imposing and collecting income tax from the citizens of India.
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