Food coupon exemption income tax

Deductions that are allowed

An exemption against same is allowed under Section 80TTA. Dividends announced by any company, be it mutual funds or stocks, are exempt from tax in the hands of the individual.

Taxation of Free Meals and Food in Income Tax Act 1961

The company may be liable to pay taxes on dividend distributions though. If you hold equities or equity mutual funds for more than a year, your income from the same will be tax exempt as these will be considered as long term capital gains from equity investments. As the name indicates, any interest income or premium you gain on specified tax-free securities will be tax exempt.

Most employees have a certain number of leaves that can be claimed each year. Some employers allow their employees to encash same if they don't avail of same. This amount is called as Leave Encashment and is exempt from taxes subject to certain conditions. If you are a Government employee and encash your leaves on your retirement or when you are leaving the job, it's considered to be completely tax free under Section However, if you have income from other sources, this income becomes taxable.

Agricultural Income is any revenue from a land that's situated in India that's being used for agricultural purposes.

Taxable and Non Taxable Allowances for Salaried Individuals

It may income from cultivation as well as income through rent of aforesaid properties. Income from activities like poultry farming, bee hiving, dairy farming or renting out your farm house for TV or Movie shooting is not considered to be part of agricultural income. Any payments received from Provident Fund are exempt as part of Section However, if you do a PF withdrawal prior to 5 years of total service, same will be taxable. Any gratuity amount received by a Government Employee is totally exempt from tax.

For all others who are covered under gratuity act, it is exempt to the least of the following:. Some employers promote a Voluntary Retirement Scheme where if employees retire before their actual age of retirement, they get some amount against same. You may get pension from your employer or through an annuity scheme that you may have purchased. The pension can either be commuted or uncommuted. Commuted pension is essentially paid upfront while Uncommuted pension is paid over regular intervals.

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Commuted Pension for the Government Employees is fully exempt. For all others, it's exempt to the least of following:. If you have received any scholarship to meet the cost of education, it's fully tax exempt under section 10 Cost of education inclues tuitition fees as well as any other incidental expense. This exemption is irrespective of actual expenditure incurred. Similarly, any awards constituted by the Government in public interest, whether in cash or in kind are tax exempt. And that's it.

These are 55 ways you can legally use today to save Income Tax. Let me know if you have any questions. Your email address will not be published. Skip to content Are you paying too much tax? Let's look at each of them one by one Deductions that are allowed Under Section 10 The first set of income tax deductions falls under the Section 10 of the Income tax act.

Let's look at some of them. LTA is eligible for vacations in India only. Conveyance Allowance This deduction is against the allowance that's provided to you to travel between your office and your home. Hostel Subsidy Hostel Subsidy is geared towards providing for your child's education.

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Uniform Allowance Any allowance to cover the expenditure on purchase and maintenance of uniform that's needed for performance of official duties or employment of profit is allowed as an deduction. Research Allowance Any allowance towards research activities in pursuit of professional duty or academics is allowed as a tax deduction. Helper Allowance This is an allowance to cover the expenditure incurred on a helper where such helper is helping you to perform your duties or professional service.

Travel Allowance Any allowance to meet the cost of travel on a tour or on transfer is tax exempt to the extent of expenditure incurred.

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Daily Allowance Daily allowance is provided to meet the ordinary daily charges incurred by an employee on account of working in a different place from his normal place of duty. Special Compensatory Allowance Hilly Areas If you receive a special compensatory allowance because you work in Hilly areas or areas with tough climate, the same will be eligible for a deduction.

If you avail of this exemption, you can't claim any exemption on border area allowance. Allowance for Employees in a Transport system This is an allowance granted to an employee working in a transport system to meet their personal expenditure incurred in the course of running such transport from one place to another.

Food Coupons, Meal Vouchers Tax Exemption in India

Underground Allowance for employees working in Mines Underground allowances are granted to those employees who are working in underground mines. Special Allowances only for the Armed Forces Counter Insurgency Allowance The Counter Insurgency Allowance is provided is provided to the armed forces who are operating in specified areas.

If this exemption is availed of, the employee cannot claim any exemption with respect to the border area allowance High Altitude Allowance A special allowance is granted to the members of the Armed forces who are working at a height of more than feet. Highly active field area allowance If the armed forces are operating in a highly active field area, they may be granted a special compensatory allowance. Some key ones are as follows: Allowance paid by the Government to its employees posted outside India Entertainment allowance received by the Government employees Allowances received by an employee of UNO from their employer Save taxes through tax exempt perquisites Perquisites are strictly not a deduction from your taxable salary, but most companies will allow you to restructure your salary and get equivalent perquisites instead of cash.

Deductions against Interest paid on Home Loan Home loan is amongst the most popular ways to save taxes. Essentially, the final taxable house property income will be:. Points to remember: Income from house property which is self occupied or wasn't occupied due to employment at another place is taken as NIL. These offers are extra savings that go up to Rs. Therefore, the total money saved comes up to Rs.

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This allowance is considered as taxable. Non-Practicing Allowance When a doctor gets associated with clinics of various laboratories or medical institutes, any non practicing allowance paid to them is taxable. Non-Taxable Allowances in India Non taxable allowances are those allowances that are a part of an individual's salary which are fully exempted from taxes. Allowances Paid to Government Employees Abroad When Indian government servants are paid while serving their employment tenure in other countries, this allowance is considered as non taxable.

These allowances are called as sumptuary allowances. Compensatory Allowances When Judges of High Court and Supreme Court receive any compensatory allowances, these are exempted allowances in income tax. Conveyance Allowance Exemption Limit This type of allowance is paid to employees for commuting to their work place from home every day.

11 Tax Free Components You Must have in Salary

If a conveyance allowance is less than Rs. The allowance is exempted up to Rs. House Rent Allowance HRA Exemption Limit House rent allowance is provided to the employees by a company to help them in coping up with their accommodation expenses. But, if an individual doesn't lives in a rented space, this allowance is fully taxable. However, if the medical expense exceeds a certain amount e.