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capital gains | faq | home | investments | income from house property | rates & rebates | salaries |
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SALARIES |
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The income received by way of salary from an employer is taxed and includes all cash allowances given by the employer. Only the reimbursement by the employer of expenses actually incurred is not to be considered for the income taxable. The employer is supposed to deduct tax at source monthly while paying you the salary. Even the arrears of salaries are taxable in the year of receipt. However, relief can be claimed u/s.89A to the extent of tax would have been payable if the arrears had been taxed in earlier years when it was received. Professional tax paid is allowable as deduction. In case of house rent allowance paid by the employer or where rent free accommodation is given the law provides for taxing of perquisites in certain circumstances. HRA If you are getting House Rent Allowance from your employer, the least of the following is exempt:-
From FY 2018-19 i.e. AY 2019-20 standard deduction is available at Rs.40,000/- from the salary income. This deduction is available to pensioners also. However, benefit of exemption of transport allowance upto Rs.19,200/- and medical allowance of Rs.15,000/- has been withdrawn. From AY 20-21, the standard deduction has been increased to Rs.50,000/-. There is no change in AY 21-22, which is the current financial year. |
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Email ID: askpcontax@gmail.com |
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capital gains | faq | home | investments | income from house property | rates & rebates | salaries |
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