SPECIAL ALLOWANCE Special allowance for residents living in hilly areas, scheduled areas and agency areas. Available in Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha, Assam, Tamil Nadu and Tripura. The maximum exemption is Rs. 200 per month. #SPECIALALLOWANCE

Calculation of Retirement Benefits Salary (15 X last drawn salary X tenure of working) divided by 30 As per the government's pensioners' portal website, retirement gratuity is calculated like this: one-fourth of a month's basic pay plus dearness allowance drawn before retirement for each completed six monthly period of a qualifying service. #CalculationofRetirementBenefitsSalary

HOUSE RENT ALLOWANCE ('HRA') Section 10(13A) & Rule 2A 0(13A) House rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer. #HOUSERENTALLOWANCE

TAXABILITY OF ALLOWANCES This is a partially taxable allowance given to employees posted in tribal areas of Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Karnataka, Tripura, Assam, West Bengal, Bihar and Orissa. ... Any amount received as an allowance under this head in excess of the prescribed limit is fully taxable #TAXABILITYOFALLOWANCES

Steps for Computation of Relief Available Under Section 89 Step 1: Firstly, calculate the tax due in the current year by including the arrears in your total income. Step 2: Now calculate the tax due in the current year by excluding the arrears from your total income. Step 3: Compute the difference of the two figures of Step 1 & 2 and let's call that difference as 'X'. #StepsforComputationofReliefAvailableUnderSection89

Meaning of Arrears of Salary Arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments. ... Employees' salaries are usually paid in arrear. Payment at the end of a period is referred to by the singular arrear, to distinguish from past due payments. #MeaningofArrearsofSalary

Profits in Lieu of Salary Any amount of compensation received by an employee from his employer or former employer in connection with the termination of employment or modification of terms and conditions of employment is regarded as profits in lieu of salary. #ProfitsinLieuofSalary

Some important facts about Salary under Taxation Salary paid tax-free-If salary is paid tax free by employer, then the employee has to include in his taxable income not only salary received but also amount of tax paid by employer. There is no difference between whether the tax paid under terms of contact by the employer or employee #SomeimportantfactsaboutSalaryunderTaxation

Definition of Word 'Salary' or Income by way of Salary [Section 17(1)] ... any advance of salary; any payment received by an employee in respect of any period of leave not availed of by him; (Leave encashment or salary in lieu of leave);

TAXATION OF SALARY INCOME - INTRODUCTION Salary accrues where the services are rendered even if it is paid outside India; Salary paid by the Foreign Government to his employee serving in India is taxable under the head Salaries; Leave salary paid abroad in respect of leave earned in India shall be deemed to accrue or arise in India #TAXATIONOFSALARYINCOME

INCOME DEEMED TO ACCRUE/ARISE IN INDIA - Section 9 Chapter ii : Income sought to be taxed under Section 9(v), (vi) and (vii) of the Income tax Act, 1961 by employing the Source Rule. By the Government: Any form of Income in the form of Interest, Royalty or Fees for technical services are deemed to be income that accrue or arise in India and can be taxed. #INCOMEDEEMEDTOACCRUEARISEININDIASection9

Meaning of residential status Residential status is a term coined under Income Tax Act and has nothing to do with nationality or domicile of a person. An Indian, who is a citizen of India can be non-resident for Income-tax purposes, whereas an American who is a citizen of America can be resident of India for Income-tax purposes #MeaningOFresidentialstatus

TAX RATES FOR THE A.Y. 2020-21 Income Tax Slabs Tax Rates Up to ?3,00,000 Nil Within the tax bracket of ?3,00,000 to ?5,00,000 5% Within the tax bracket of ?5,00,001 to ?10,00,000 ?10,000 + 20% of total income exceeding ?5,00,000 Above ?10,00,000 ?1,10,000 + 30% of total income exceeding ?10,00,000 #TAXRATES

TAX PLANNING, TAX EVASION AND TAX AVOIDANCE Objective: The objective of Tax avoidance is to reduce tax liability by applying the script of law whereas Tax evasion is done to reduce tax liability by exercising unfair means. Tax planning is done to reduce the liability of tax by applying the provision and moral of law. #TAXPLANNINGTAXEVASIONANDTAXAVOIDANCE

ROUNDING-OFF - Taxation Search Results Featured snippet from the web Section 288B: Rounding off Income Tax As per Section 288B of the income tax act, the total tax computed shall be rounded off to the nearest Rs 10. The rounding off of tax would be done on the total tax payable or refundable and not to various different sub-heads of taxes like income tax, education cess, surcharge etc. #ROUNDINGOFFTAXATION