What is deduction under section 10 of Income Tax Act?
What is deduction under section 10 of Income Tax Act?
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 exemptions under section 10?
The exemption under section 10 covers Leave travel allowance (LTA) Agriculture Income, Life Insurance, Gratuity, leave encashment, Transport allowance etc.
Which income is exempted from tax under section 10?
Income Exempt From Tax As Per Section 10
| Section 10(1) | Income earned through agricultural means |
|---|---|
| Section 10(13) | Any payment received through a Superannuation Fund |
| Section 10(13A) | House Rent Allowance |
| Section 10(14) | Allowances utilised to meet business expenses |
| Section 10(15) | Income received in the form of interest |
What are the allowances under section 10?
| S. N. | Section | Particulars |
|---|---|---|
| 1. | 10(13A) | House Rent Allowance (Sec. 10(13A) & Rule 2A) |
| 2. | 10(14) | Children Education Allowance |
| 3. | 10(14) | Hostel Expenditure Allowance |
| 4. | 10(14) | Transport Allowance granted to an employee to meet expenditure for the purpose of commuting between place of residence and place of duty |
What is Section 10 26AAA of tax?
✅What is Section 10 26AAA of tax? The section 10(26AAA) covers the income of a Sikkimese individual which is arising either in the state of Sikkim or by way of dividend or interest on securities, is not to be included in total income for tax calculation.
What is Section 10 11 of income tax?
Section 10(11) of the income tax act—payment of statutory provident fund. Any sum is received of the statutory provident fund relating to the contribution, amount and interest on his termination from the company or firm will be exempted.
What is Section 10 26AAA income tax?
What is Section 10 13 A?
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.
What is section 10 14 )( i in income tax?
As per Section 10(14)(i) of the Income-tax Act, 1961 (Act), any allowance or benefit granted to the employees to meet expenses wholly, necessarily and exclusively towards performance of official duties (normally referred to as per diems) are exempt from tax, provided such an expense is actually incurred by the …
What is Section 10 38 of income tax?
Budget 2018 proposed to remove Section 10 (38) of the Income Tax Act, 1961. As per this section, the long-term capital gains (LTCG) arising on sale of equity shares or units of an equity-oriented mutual fund on which Securities Transaction Tax (STT) is paid was exempt from taxation.
What is Section 10 37 of income tax?
In order to provide relief to the farmers, a new clause (37) has been inserted in section 10 providing exemption on capital gains arising to a Hindu undivided family or to an individual from the transfer of agricultural land, being capital asset within the meaning of clause (14) of section 2, by way of compulsory …
What is Section 10 of IT Act?
The objective of section 10 of the Income Tax Act is to reduce the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and so on.
What is Section 10 income?
Section 10 of the Income Tax Act contains compensation and allowances provided to salaried employees engaged in the organised sector. Apart from the basic pay, there are other allowances that are a part of the salary structure of employees.
Who is exempt from paying income taxes?
Benefits from disability, social security, welfare, veterans and workers compensation are considered tax exempt income. They are only taxable to people earning a total income exceeding a specific amount during a calendar year. Most gifts and inheritance are also considered tax exempt income.
When can you be exempt from taxes?
If you had no tax liability in the prior year and you do not expect to owe anything in the current year, you might qualify to be exempt from federal income tax withholding. You can claim exemption if your income is less than $1,050 and you are a dependent on another person’s return.
What is FICA exempt income?
According to the Social Security Administration, income from sources other than work is exempt from FICA taxes. Dividends paid on stocks, interest from savings accounts or investments, capital gains, pensions and annuities all are exempt.