calculation for tds on salary

[Guest]

which items are excempted from income tax and what are the limitations for calculating tax on salaries

[CA Rachit Agarwal]

Exemptions:

1. Chlildren Allowance subject to prescribe limits

2. House Rent Allowance subject to fulfillment of certain conditions and limits

3. Tranpport Allowance

4. Expenditure incurred at the time of performance of the duties.

5. Others

[Vidya Sagar Jha]

1) Transport Allowances @ 800 p.m.

2) Tuition Fees of Children

3) HRA

4) U/s-80C : Maximum Investment to Rs.1 Lacs

5) U/s 24b : Interest on Housing Loan

AI Summary

Tax exemptions on salary identify allowable allowances, HRA and transport limits, plus investment and housing loan deductions. Certain salary components are exempt from tax subject to prescribed conditions and limits: children-related allowances and tuition reimbursements, House Rent Allowance conditioned on fulfillment of HRA rules and ceilings, transport allowance (commonly a modest monthly amount in practice), and reimbursed employment expenditures. Deductions include investment-linked deductions up to the stated investment ceiling and interest on housing loans deductible under the housing loan interest rules, all subject to applicable statutory conditions and limits.