Download Automated Income Tax Form 16 for F.Y. 2018-19 With Common allowance for Salary Person FY 2018-19 (AY 2019-20)

An allowance is mostly outlined because the fastened amount of cash that is given often additionally to wage for the aim of meeting some specific demand connected with the service rendered by the worker or as compensation for uncommon conditions of that services.

Following are the ten commonest allowance which each and every salaried person have to be compelled to apprehend and use it for tax designing for the yr 2017-18 (AY 2018-19).


#.
Section
Particulars
1
10(13A)

House rent allowance (HRA)

Least of the following is exempted-
(i) Actual HRA received
(ii) 40% of salary (50% in case of HP in Mumbai, Kolkata, Delhi, Chennai)
(iii) Rent paid less 10% of salary*
* salary represent Basic+DA (if part of retirement benefit)
2
10(14)(ii)

Child education allowance

Lower of the following is exempted-
i) Actual allowance received
ii) 100/- pm per child
up to a maximum of 2 children.
3
10(14)(ii)

Child’s Hostel Expenditure allowance

Lower of the following are exempted-
i) Actual allowance received
ii) 300/- pm per child
up to a maximum of 2 children.
4
10(14)(ii)

Transport Allowance to Employees

Lower of the following are exempted-
i) Actual allowance received
ii) 1600/- pm or Rs.3200/- pm for blind or deaf and dumb
From FY 2018-19, this allowance is not available.
5
10(14)(ii)

Underground Allowance For Mines  

Lower of the following are exempted-
i) Actual allowance received
ii) 800/- pm
(working in uncongenial, unnatural climate in underground mines)
6
10(14)(i)

Conveyance allowance (Not a Transport Allowance)

To meet the expenditure on conveyance in performance of duties of an office.
Lower of the following are exempted-
i) Allowance received
ii) Amount utilized for the conveyance
7
10(14)(i)

Uniform allowance

Lower of the following are exempted-
(i) Allowance received
(ii) Amount utilized for the conveyance
8
10(14)(ii)

Special compensatory Allowance(Hilly areas)

(i) Siachen area of Jammu and Kashmir Rs.7000/- pm
(ii) All places located at a height of 1,000 meters or more above the sea level Rs.300/- pm
(iii) Specified Areas Rs.800/- pm
9
10(14)(ii)

Border area allowances

Amount exempt from tax varies from Rs. 200/- pm to Rs. 1300/- pm
10
10(14)(ii)

Tribal area allowance

[Given in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa]
Amount exempt from tax is Rs. 200/- pm
Don’t forget to take below-mentioned allowances also!

Sl no
Section
Allowances

10(14)

Traveling allowance/Transfer allowance

Expenses on travel, tour or transfer shall be exempted.
The exemption will be limited to the lower of
a. Actual Expenditure
b. Amount of allowance provided by the employer
2
10(14)

Daily Allowance

To meet the ordinary daily expenditure incurred by the employee on account of his absence from the normal place of duty, due to tour or journey in connection with his transfer.
The exemption will be limited to the lower of
a. Actual Expenditure
b. Amount of allowance provided by the employer
3
10(14)

Helper/Assistant Allowance

To meet the expenditure on a helper engaged for performing the official duty.
The exemption will be limited to the lower of
a. Actual Expenditure
b. Amount of allowance provided by the employer
4
10(14)

Research Allowance

to meet the expenditure on academic research and other professional pursuits
The exemption will be limited to the lower of
a. Actual Expenditure
b. Amount of allowance provided by the employer
































Example:
Name of allowance
Amount of allowance (A)
Actual expense
 (B)
Exempted
(C)
[Lower of A and B] 
Taxable
[A-C]
Traveling allowance
10000
12000
10000
0
Conveyance allowance
18000
20000
18000
0
Daily allowance
6000
6600
6000
0
Helper allowance
3000
3400
3000
0
Research allowance
8000
11000
8000
0
Uniform allowance
3000
4500
3000
0
Taxable allowance

0

An employee is required to show evidence of the above expenditures. So the question of an excess of allowance over expenditure does not arise.

Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility Can prepare One by One Form 16 Part B for F.Y.2018-19]




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