Deductions from gross salary: employment-related payments and retirement receipts deductible subject to prescribed conditions and account rules. Clause 22 enumerates deductible items from gross salary for income-from-employment computation: employment tax, employer-paid journey allowances to the ... Summary
Deductions from gross salary: employment-related payments and retirement receipts deductible subject to prescribed conditions and account rules.
Clause 22 enumerates deductible items from gross salary for income-from-employment computation: employment tax, employer-paid journey allowances to the extent prescribed, prescribed special allowances reimbursing duty-related expenses, and amounts linked to voluntary retirement, termination or separation schemes. It allows deductions for gratuity and death-cum-retirement gratuity, commuted pension within specified fractional limits, and specified gallantry-award pensions. Retirement-related deductions (gratuity, commutation, separation receipts) are subject to deposit into a prescribed Retirement Benefits Account with a permitted savings intermediary under a Central Government scheme.
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