Allowances & Deductions for Salaried Employees
List of Allowances & Exemptions relevant to Salaried Employees :
| S.No | Section | Nature of deduction | Amount | Whether available in the new regime? |
| 1. | 16 | Standard Deduction | 50,000 | Not Available |
| 2. | 16 | Employment Tax (Professional Tax) | Actual | Not Available |
| 3. | 80C | Life Insurance Premium – Self,Spouse, Child | Actual (Subject to a limit of 1,50,000 and other conditions) | Not Available |
| 4. | 80 C | Contribution Made to PF Account | Actual (Subject to a limit of 1,50,000) | Not Available |
| 5. | 80 C | Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children. | Actual (Subject to a limit of 1,50,000) | Not Available |
| 6. | 80C | Housing Loan – Principal Amount | Actual (Subject to a limit of 1,50,000) | Not Available |
| 7. | 80 CCD (1)/(1B) | Contribution to NPS | 50,000 (Additional limit on & above limit of 1.5 lakh) | Not available |
| 8. | 80 CCD(2) | Employer Contribution to NPS | 10 % of Salary+DA | Available |
| 9. | 80 D | Amount paid for health insurance of self, spouse, dependent children or parents | For self, spouse and dependent children : Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen); For parents of the assessee : (Additional) Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) Medical expenditure if no amount is paid in respect of health insurance– Rs.50,000 (only in case of senior citizen) Aggregate amount of deduction cannot exceed Rs.1,00,000 in any case | Not Available |
| 10. | 80 E | Interest on Education loan – (maximum period : 8 years) | Actual | Not Available |
| 11. | 80 EEB | Interest payable on loan purpose of purchase of an electric vehicle. | Actual (Subject to limit of 1,50,000) | Not Available |
| 12. | 80 GG | Rent | Lower of : a)5000 p.m b)Rent paid – 10% of Total Income c)25% of Total Income | Not Available |
| 13. | 10(13A) | House Rent Allowance | Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary Note: i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent 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 10th October, 2013] | Not Available |
| 14. | 10(14) | Conveyance Allowance | Actual | Available |
| 15. | 10(14) | Travelling Allowance – to meet the cost of travel on tour or on transfer | Actual | Available |
| 16. | 10(14) | Daily Allowance – to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty | Actual | Available |
| 17. | 10(14) | Helper Allowance, Uniform Allowance | Actual | Not Available |
| 18. | 10(5) | LTA | Two journeys in a block of 4 calendar years is exempt | Not Available |
| 19. | 10(10AA) | Leave Encashment | Least of the following shall be exempt from tax: a)Amount actually received b) Unutilized earned leave (Subject to limit of 30days for each year of Service) X Average monthly salary c) 10 months Average Salary d) Rs. 3,00,000 | Available |
| 20. | 10(10) | Gratuity | Least of following amount is exempt from tax: 1. (15/26)* X Last drawn salary X completed year of service or part thereof in excess of 6 months. 2.Rs. 20,00,000 3.Gratuity actually received. * If not covered under Gratuity Act – Half month’s Average Salary* X Completed years of service | Available |
| 21 | 24 | Interest on Housing loan | Self Occupied – Actual (Subject to limit of Rs 2,00,000) Let Out – No Limit* *However Interhead Set off with Salary permissible up-to a limit of 2 lakh.
| Self-occupied -Not Available |
