Showing posts with label Deductions and Exemptions. Show all posts
Showing posts with label Deductions and Exemptions. Show all posts

Wednesday, 5 July 2017

Deductions from Income from Other Sources [Sec. 57]

The following expenditures are allowed as deductions from income chargeable to tax under the head ‘Income from Other Sources’:
S.N.SectionNature of IncomeDeductions allowed
157(i)Dividend or Interest on securitiesAny reasonable sum paid by way of commission or remuneration to banker or any other person for purpose of realizing dividend  or interest on securities

Deduction in Income from House Property


DescriptionNature of Deductions
Municipal TaxesMunicipal taxes including service-taxes levied by any local authority in respect of house property is allowed as deduction, if:
a) Taxes are borne by the owner; and
b) Taxes are actually paid by him during the year

Exemptions and Deductions from Salary Income


110(13A)read with Rule 2AHouse rent allowanceLeast of the following is exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Chennai)
c) Rent paid minus 10% of salary
* Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission
i. Fully taxable, if HRA is received by an employee who is living in his own house or if he does not pay any is self occupied.
ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10-10-2013].