Category Archives: Salary

Employees Provident Fund (EPF)

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Provident Fund is a scheme designed and controlled by Government of India for the Indian taxpayers. The primary purpose of this scheme is to secure post-retirement tenure of taxpayers. Investment in Provident Fund is classified in 2 broad types- Employee’s Provident Fund (EPF) – For salaried taxpayers only. Public Provident Fund (PPF)… Read more »

Did you receive a gift from your employer? Do remember to pay tax

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Many companies gift their employees with Smartphones, tablets, laptops etc. as a reward for their endeavours. Employees may also receive free holiday, bonus or a performance increment, as gifts. However, employee should remember that such gifts are absolutely taxable if the monetary value of gifts exceeds  a certain limit. Income Tax Act provides… Read more »

Living in a rented apartment? Hope you have taken your landlord’s PAN

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Finding a rented place for living is not an easy task, we should atleast not let go off the perks involved like HRA exemption. As far as taxation is concerned, various things such as rent agreement, HRA benefits, TDS provisions on payment of rentals etc are all taken care of. However many… Read more »

How to file return without a Form 16?

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For a salaried individual, Form 16 is very important for filing Income-tax return. What is Form 16?. In simple words, Form 16 is a TDS certificate which gives all information about salary, tax liability and the tax deducted at source (TDS) from income chargeable under the head “salaries”. It may… Read more »

How is HRA calculated for shared flat?

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If you are living with your friends, colleagues or others in a shared flat, you can avail HRA benefit in proportion of rent that you are paying. HRA could be claimed in your Income-tax return only if you have submitted rent receipts to your employer. Hence you need to make sure that you… Read more »

Allowances can help you save Income-tax

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Salaried taxpayer receives emoluments(benefits) from his/her employer generally referred as his package. The emoluments consists of various items such as Basic Salary, Dearness Allowance, Bonus, Commission on sales, Perquisites etc. All these items are covered separately in the Form 16 of the taxpayer. Out of these, allowances play a vital… Read more »

Make sure you get your medical reimbursement!

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A medical allowance is an allowance provided under the Income tax Act, which states that any employee can submit the bills of any medical treatment undergone by him for himself or his family members. The limit for the allowance is Rs. 15,000. The medical allowance may be paid to the employee… Read more »

House Rent Allowance

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Q. What is House Rent Allowance (HRA)? Ans.: If a taxpayer is a salaried person and living in a rented house, then certain sum of money is paid to him every month by his employer as Allowance against accommodation. The very purpose of paying this allowance is to meet the… Read more »