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35 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Salary Section |
Sec 15 to 17 |
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Exemption Children Education Allowance |
100 p.m Per Children Upto 2 Children |
100 |
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Expempted Hostel Allowance For children |
300 p.m Per Child Max. 2 children Note: Har Child ka Alag Alag hi dekhna hai |
300 |
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What is Allowance |
When Employer gives some money for Specific Purpose to Emploee Emploee may or may not actually use it |
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What Allowances are Fully Exepmt |
Allowances given to Emploees For some Official Work |
Travelling, Hotel Bill , Dinner With Client |
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What are Fully Taxable Allowances |
Those are used for Fully Personal Purpose |
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What are Partially Taxable allowance |
On which Govt gives Exemption upto a Limit For E.g Children Education Allowance,Children Hostel Allowance etc |
hostel Allowance, Education Allowance |
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What is Arrers Salary? |
The salary Received After Court's Judgement |
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Uncommuted Pension |
The Pension which is received Monthly not In Lump Sum |
Mahine ki |
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Non Practicing Allowance |
Jab koi Employer kisi Emploee ko Bahar Practice na krne ke pese de |
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Interim Allowance |
To meet Increased Cost of Living in the Cities. |
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Professionals income is From Salary Or PGBP |
When Professional work Independently and there is no Employer and Emploee Relationship.
But if he works under someone's order and enters into Employment Contract forming an employer emploee relation.It also includes Non Practicing Allowance.
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Education and Hostel Allowance Exemption Section |
Sec 10(14) |
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What is Running Allowance |
The Emploees who work in Transportation Sector those are the receivers of Running Allowance For e.g. Truck Drivers |
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Exempted Running Allowance |
Lower of 70% of Amount received Or Rs.10000 p.m |
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Exempted Transport Allowance |
No Exemption For Normal Persons for Transport Allowance from p.Y. 2018-19
But For Blind/deaf/Handicappped/Dumb it is Rs 3200 |
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What is Travelling Allowance? |
For travelling out of station or Foreign Tour For Official Purpose This is Fully Exempt |
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What is Daily Allowance |
Money given for meeting Daily charges inoccured on a Tour It is fully exempt |
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Conveyance Allowance |
Conveyance money given to emploees for Official Duties This is fully exempt |
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Helper Allowance |
Money given to meet expenditure on a Helper for performance of official Duty Fully Exempt |
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Academic Allowance |
Should be used by Emploees for Academic Purpose
Fully Exempt |
Companies apne Emploees ko MBA krati hai |
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What is RBS? |
It is Retirement Benefit Salary. it is computed for the Exemption purposes.There is no certain logic of such calculation. RBS= BASIC SALARY+D.A.(IF FORMING PART OF SALARY)+COMMISSION (IF FIXED % OF TURNOVER) |
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What is HRA? |
When Employer gives Emploees monetary benefit for compensation of rent for accommodating. It is taxable subject to conditions as Emploee may or may not actually use it for the purpose |
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What Portion of HRA is Exempt? |
Lower of the Following is Exempt and deducted from ACTUAL HRA RECEIVED to calculate taxable HRA
1) Amount Received 2) 50% of RBS (in metro city) 40% of RBS (in non metro cities)
3) Rent Paid (minus) 10% of RBS
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When RBS is used? |
It is used for calculation of HRA exemption. |
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RBS example |
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What factors effects Calculation of HRA? |
-Salary -Rent of Accomodations -City of Assessee If any on of these factors change the Exemption calculation has to be Revised. |
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What is Gratuity |
It is a lump sum payment given to emploee by employer on Resignation or Retirement. |
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Gratuity if Received During Employment is |
Fully Taxable in all cases both Govt and non Govt. Emploees |
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Gratuity is fully Exempt in Case of? |
Government Emploees |
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What is Taxable Gratuity in Case of Pvt. Emploees |
Actual amount Received- expemption u/s 10(10) |
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Which amount of Gratuity is exempt Under Sec10(10) in case pf emploees covered under Gratuity Act? |
Lower of
-Amount Actually Received
-Notified Amount 200000 -15/26 * Last month Salary(Full month )* Completed years of service and Part thereof in excess of 6 Months (Means if more than 6 month then considered full year and if less then that tenure during the year is ignored) |
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What is Rent Free Accommodation/concessional accomodation |
When Employer gives you a property to accomodate free of cost.When Less rent is received from emploee then it is called Concesstional Accomodation |
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What is R.F.A of essential Nature |
Where providing Accomodation is necessary.For e.g. Mine workers, Industries in Hilly Areas |
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R.F.A is exempt in case of |
Essential Accomodation |
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