Post or Posting wise specific Deductions allowed to Salaried Person in Financial Year 2018–19 from their Salary Income under Income Tax

Post or Post­ing wise spe­cif­ic Deduc­tions allowed to Salaried Per­son in Finan­cial Year 2018–19 from their Salary Income under Income Tax. Sec­tion wise deduc­tion lim­it is giv­en in the fol­low­ing Table.

Sec­tion Nature of Deduc­tions Amount of Deduc­tion
10(7) For­eign allowances or perquisites paid or allowed by Gov­ern­ment to its employ­ees (an Indi­an cit­i­zen) post­ed out­side India Ful­ly Exempt
Allowances to Judges of High Court/Supreme Court (Sub­ject to cer­tain con­di­tions) Ful­ly Exempt.
10(45) Fol­low­ing allowances and perquisites giv­en to serv­ing Chairman/Member of UPSC is exempt from tax: a) Val­ue of rent free offi­cial res­i­dence b) Val­ue of con­veyance facil­i­ties includ­ing trans­port allowance c) Sump­tu­ary allowance d) Leave trav­el con­ces­sion Ful­ly Exempt
Allowances paid by the UNO to its employ­ees Ful­ly Exempt
10(45) Allowances to Retired Chairman/Members of UPSC (Sub­ject to cer­tain con­di­tions) Exempt sub­ject to max­i­mum of Rs.14,000 per month for defray­ing ser­vices of an order­ly and for sec­re­tar­i­al assis­tant on con­tract basis. The val­ue of res­i­den­tial tele­phone free of cost and the num­ber of free calls to the extent of 1500 per month shall be exempt.
Sec. 10(14) Spe­cial com­pen­sato­ry Allowance (Hilly Areas) (Sub­ject to cer­tain con­di­tions and loca­tions) Amount exempt from tax varies from Rs. 300 per month to Rs. 7,000 per month.
Sec. 10(14) Bor­der area allowances, Remote Local­i­ty allowance or Dis­turbed Area allowance or Dif­fi­cult Area Allowance (Sub­ject to cer­tain con­di­tions and loca­tions) Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month.
Sec. 10(14) Trib­al area allowance giv­en in (a) Mad­hya Pradesh (b) Tamil Nadu © Uttar Pradesh (d) Kar­nata­ka (e) Tripu­ra (f) Assam (g) West Ben­gal (h) Bihar (i) Oris­sa Rs. 200 per month
Sec. 10(14) Com­pen­sato­ry Field Area Allowance. If this exemp­tion is tak­en, employ­ee can­not claim any exemp­tion in respect of bor­der area allowance (Sub­ject to cer­tain con­di­tions and loca­tions) Rs. 2,600 per month
Sec. 10(14) Com­pen­sato­ry Mod­i­fied Area Allowance. If this exemp­tion is tak­en, employ­ee can­not claim any exemp­tion in respect of bor­der area allowance (Sub­ject to cer­tain con­di­tions and loca­tions) Rs. 1,000 per month
Sec. 10(14) Counter Insur­gency Allowance grant­ed to mem­bers of Armed Forces oper­at­ing in areas away from their per­ma­nent loca­tions. If this exemp­tion is tak­en, employ­ee can­not claim any exemp­tion in respect of bor­der area allowance (Sub­ject to cer­tain con­di­tions and loca­tions) Rs. 3,900 per month
Sec. 10(14) Under­ground Allowance is grant­ed to employ­ees work­ing in uncon­ge­nial, unnat­ur­al cli­mate in under­ground mines Up to Rs. 800 per month
Sec. 10(14) High Alti­tude Allowance is grant­ed to armed forces oper­at­ing in high alti­tude areas (Sub­ject to cer­tain con­di­tions and loca­tions) a) Up to Rs. 1,060 per month (for alti­tude of 9,000 to 15,000 feet) b) Up to Rs. 1,600 per month (for alti­tude above 15,000 feet)
Sec. 10(14) High­ly active field area allowance grant­ed to mem­bers of armed forces (Sub­ject to cer­tain con­di­tions and loca­tions) Up to Rs. 4,200 per month
Sec. 10(14) Island Duty Allowance grant­ed to mem­bers of armed forces in Andaman and Nico­bar and Lak­shad­weep group of Island (Sub­ject to cer­tain con­di­tions and loca­tions) Up to Rs. 3,250 per month

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