Gross Total Income

Understanding Section 10(10) Section 10(10) provides tax exemption on gratuity payments received by employees. Gratuity is a lump sum amount paid by employers as a reward for long service. Key Features ✔ Who Can Claim?: All employees (government and private sector) ✔ Exemption Limits: Vary for different categories of employees ✔ Purpose: Retirement benefit for long-term service Types of Gratuity […]

Understanding Section 10(10A) Section 10(10A) provides tax exemption for commuted pension amounts received by employees. Commutation refers to exchanging a portion of monthly pension for a lump sum payment. Key Features ✔ Who Can Claim?: All pensioners (government and private sector) ✔ Exemption Limits: Vary for different categories of employees ✔ Purpose: Provides liquidity option for retirees Types of Pension

Section 10(10AA) of the Income Tax Act, 1961 provides important tax exemptions for leave encashment (also called leave salary) received by employees. This provision has undergone significant changes in recent years, most notably with the increase in exemption limits in Budget 2023. Let me explain this section in detail with practical examples to help you

Section 10(10B) of the Income Tax Act, 1961 provides important tax relief for workmen who receive compensation due to retrenchment. This provision is designed to ease the financial burden on employees who lose their jobs involuntarily. Below is a detailed explanation with practical examples to help understand how this exemption works. Key Provisions of Section

Section 10(10BC) of the Income Tax Act, 1961, provides an exemption for compensation received by an individual (or legal heirs) from the Central/State Government or a local authority due to a disaster. This exemption applies to compensation received for: Deathcaused by a disaster Injury or damageto health due to a disaster Damage/destruction of a house or building(excluding

Section 10(10C) of the Income Tax Act provides tax exemption on compensation received by an employee under a Voluntary Retirement Scheme (VRS) or an Early Separation Scheme. This exemption is designed to provide financial relief to employees who opt for voluntary retirement. Key Conditions for Exemption Eligible Employees: Employees of public sector companies(government-owned) Employees of private companies(if VRS complies with government

Section 10(10CC) provides a unique tax benefit where certain perquisites paid by employers are exempt from tax in the hands of employees, while the employer bears the tax liability. This provision was introduced to encourage companies to offer tax-efficient benefits to employees. Key Features of Section 10(10CC) Applies to Perquisites Only: Covers benefits like rent-free accommodation, car facilities,

Section 10(10D) provides tax exemption on amounts received from a life insurance policy, including: Maturity proceeds Death benefits Surrender value Bonus amounts Key Conditions for Tax Exemption For Policies Issued Before 1st April 2023 ✅ Fully tax-exempt if: Premiums ≤ 10% of sum assured(for policies issued after 1st April 2012) Premiums ≤ 20% of sum assured(for policies issued before 1st April

Section 10(11) of the Income Tax Act provides tax exemption on withdrawals from a Statutory Provident Fund (SPF). This applies to government employees and certain recognized institutions. Key Features of Section 10(11) Applies to Statutory Provident Fund (SPF): Maintained under the Provident Funds Act, 1925 Mainly for government employees, railways, universities, and approved institutions Fully Tax-Free: Both employer &

Section 10(11A) provides full tax exemption on withdrawals from a Sukanya Samriddhi Account (SSA), making it one of the most tax-efficient savings schemes for a girl child’s future. Key Features of Sukanya Samriddhi Account (SSA) Eligibility: Only for girl children below 10 years(extended to 14 years in 2023) Maximum 2 accounts per family(exception for twins/triplets) Tax Benefits: Contributions: Deductible under Section 80C(up