Tax Ready Reckoner

According to Section 10(7), allowances or perquisites received by an employee outside of India for rendering services outside of India are not considered as income and therefore, are not subject to taxation. This means that if you are an employee who receives allowances or perquisites for work done outside of India, you do not need […]

Death-cum-Retirement Gratuity is an important financial benefit provided to employees in India. It is governed by Section 10(10) of the Income Tax Act, 1961. In this blog post, we will explore the details of Death-cum-Retirement Gratuity and how it impacts employees. What is Death-cum-Retirement Gratuity? Death-cum-Retirement Gratuity is a lump sum amount paid by an

Section 10(10A) of the Income Tax Act in India relates to the tax treatment of payments made in commutation of pension received by employees. Commutation of pension refers to the lump-sum payment that an employee receives in lieu of a portion of their regular pension. Here’s an overview of Section 10(10A): Payment in commutation of

Leave encashment refers to the practice of converting accumulated leave into cash. Many organizations provide their employees with the option to encash their unused leave days. However, when it comes to the tax treatment of leave encashment, there are certain rules and regulations that need to be followed. In India, the tax treatment of leave

Section 10(10B) of the Income Tax Act in India provides an exemption for compensation received by employees on retrenchment. This exemption is intended to provide relief to employees who are retrenched or terminated from their employment. Here are the key points related to Section 10(10B): Any compensation received by a workman at the time of

When a disaster strikes, it can cause immense damage to life and property. In such difficult times, the government and various organizations provide compensation to the affected individuals and businesses to help them recover and rebuild. However, it is important to understand the tax implications of such compensation. Under Section 10(10BC) of the Income Tax

Section 10(10C) of the Income Tax Act provides an exemption to employees who receive a certain amount on voluntary retirement or separation from service. This exemption is applicable to both government and non-government employees. According to the provisions of Section 10(10C), any amount received by an employee as a voluntary retirement compensation is exempt from

Section 10(10CC) of the Income Tax Act, 1961 deals with the taxation of non-monetary perquisites provided by an employer to an employee. Non-monetary perquisites refer to benefits or facilities provided by the employer other than monetary compensation. Under this section, any non-monetary perquisite provided by the employer is considered as taxable income for the employee.

Section 10(10D) of the Income Tax Act deals with the tax treatment of the sum assured received from a life insurance policy. According to Section 10(10D), any amount received under a life insurance policy, including the sum assured, bonus, or any other payment made on the death of the insured, is exempt from tax. This

Provident Fund (PF) is a social security scheme in India that provides financial assistance to employees after retirement or superannuation. The scheme is mandatory for all employees earning up to Rs. 15,000 per month. Under the PF scheme, both the employee and the employer contribute to the employee’s PF account. The employee’s contribution is deducted