Check various income and payment items of employee qualified for tax exemption under different sections of income tax act and the maximum limit of allowable amount for tax exemption of an employee or individual to submit during filing of ITR in a assessment year under different slabs…
Here, in this portal, you can check the complete details about how to save your income tax on your salary income with various investment options which allow exemption of income tax partially or on full amount invested in self name or on any family member.
Employee Income Tax includes on
For an employee in BSNL or any organization, the Salary for the purpose of income tax includes different forms of receipts like Basic Pay, Industrial Dearness Allowance (IDA), Honorarium, Advance of pay, Leave salary, OTA, Tuition fees, Bonus, Subsistence Allowance, Value of rent free quarters, Fees, Pension other than family pension and House Rent Allowance with provision for exemption.
Employee Income Tax exemption on
The Salary of an employee allows the tax exemption for income tax purpose does not include LTC, Reimbursement of Medical Expenses (subject to limitations) Conveyance allowance, Transport allowance (up to Rs. 1400 per month), Children’s educational allowance, Hostel subsidy, and cash equivalent of leave salary paid at the time of retirement.
For the two instances (Income Tax includes and Tax exemption under different sections), the salary for the financial year will be any amount mentioned above due or drawn, which is whether paid or not from 1st April to 31st March is taken into account.
Have a look at various tax exemption items for employee
Income Tax Exemption for HRA
No tax exemption in case the employee lives in his own house or does not pay any house rent or the house rent does not exceed 10% of his salary, means the HRA received is taxable income in full.
If the employee is living in rented house, he/she will get the tax exemption for
- Actual HRA received or
- Rent paid in excess of 10% of Salary or
- 50% of salary if living in Mumbai, Kolkata, Delhi and Chennai or
- 40% of salary in living in any other place
The above four cases are considered for employee income tax exemption and the amount of exempted is to be deducted from the total salary.
Tax exemption for Rent Free Accommodation
If an employee is provided with rent free quarters of unfurnished, the licence fee of the quarters should be added with income, where if furnished, besides the licence fee, 10% per annum of the original cost of furniture or actual hire charges, if hired, will be added to the salary at 15% of taxable emoluments will be treated as perks in respect of employees who were observed or on deputation living in government or PSU accommodation for the purpose of calculation of Income Tax and the exemption.
Professional tax exemption
The actually paid profession tax should be allowed for tax exemption during the year is to be deducted from gross salary of the employee.
Deduction of Income Tax or Exemption (Before arriving taxable income) under Section 80
- For the individuals who have less than 60 years can have a tax exemption in deduction of premium up to a limit of Rs 15000 paid by cheque for medical insurance of any insurance company in India, where for senior citizens, it is up to Rs. 20000 per annum is to be deducted under the income tax act Section 80D.
- For incurring expenditure in treatment / maintenance / rehabilitation of any dependent relative who is suffering from permanent physical disability including blindness and Rupees 1 Lakh limit is allowed for income tax exemption in the case of severe disability under Section 80DD.
- Where an individual actually allowed a tax exemption of Rs. 40,000 for any expenditure include for medical treatment to himself or his dependent relative suffering from diseases like cancer or AID, chronic renal failure and for Senior citizens, the income tax exemption limit is allowed up to Rs.60,000 under section 80DDB.
- Any donation deducted from employee pay bill for specific purposes as per condition specified will be allowed without limit for tax exemption under section 80G.
- An amount of Rs 50,000 limit per financial year is allowed for tax exemption limit, if the assessee is physically handicapped partially blind to be certified by the Government doctor as per the norms prescribed for this purpose by CBDT (80 U), and Rs. 1,00,000 is allowed for income tax exemption, if the assessee is with severe disability.
- Amount of Rs.5000 or one fifth of employee salary whichever is less, is allowed for tax exemption under Income Tax Act for Entertainment allowance received by the employee in the under Section 16.
- Under Section 80E, an amount of Rs. 40,000 is allowed for tax exemption on repayment of Interest on loan of self children to higher education.
Different Income Tax Slabs
Government of India has divided the individuals into three different groups according to the age of all genders and levied the income tax on individual taxpayer with different slabs of income tax rates as mentioned below, and such tax slabs and tax exemption are changed in every budget as per the requirement and announced by GOI, so let’s have a look at the different categories of individual taxpayers and the slabs of each category
- Individuals of all kinds below the age of 60 years of age, there is an income tax exemption limit up to Rs. 2,50,000.
- Senior Citizens / Pensioners of all kinds from 60 years to 80 years of age by allowing the tax exemption up to a limit of Rs 3,00,000.
- Super Senior Citizens / Pensioners above 80 years of age allowed the income tax exemption up to a limit of Rs 5,00,000.
Income Tax Slab Rates for Tax Payers for Assessment Year 2019 2020
|Income Tax Slab on Net Received||Income Tax Rate||Health / Education Cess on calculated Income Tax|
|Below 60 years|
|Up to Rs. 2,50,000||Not Applicable||Not Applicable|
|Rs. 250001 to 5,00,000||5% on exceeding 5,00,000||4%|
|Rs. 500001 to 10,00,000||12,500 + 20% on exceeding 5lakhs||4%|
|Rs 10,00,000 and above||1,12,500 + 30% on exceeding 10 lakhs||4%|
|From 60 Years to 80 years Old|
|Up to Rs. 3,00,000||No Tax||No Tax|
|Rs. 300001 to 5,00,000||5%||4%|
|Rs. 500001 to 10,00,000||20%||4%|
|Rs 10,00,000 and above||30%||4%|
|Above 80 Years of age|
|Up to Rs. 5,0,000||No Income Tax||No Income Tax|
|Rs. 500001 to 10,00,000||20%||4%|
|Rs 10,00,000 and above||30%||4%|
To get the income tax exemption before the ITR submission, an employee of BSNL or other departments can submit Form 12BB declaring the investments and savings to provide the income tax exemption and to avoid the advance tax recovery by employer from the salary.
How to Download Income Tax Report from BSNL ERP ESS Portal
A permanent employee of Bharat Sanchar Nigam Limited is a default user of BSNL ERP ESS portal with alloted user id and password allowed to download the income tax report showing all the item wise income and deductions with tax exemption during the financial year, let’s have a look about how to download Income Tax report from ERP ESS portal of BSNL.
- Login to eportal.erp.bsnl.co.in/irj/portal with your allotted user id and password
- Click Employee Self Service > Pay Information
- Press Income Tax Report and enter the financial year in the respective field and click Display Income Tax PDF
- Save the Income TAX PDF document on your downloads / where your required.
The downloaded Income Tax report of BSNL employee contains various earnings like Basic Pay, DA, HRA and allowances along with deductions like EPF / GPF, GIS/GSLIS, LIC or PLI and Professional Tax which are qualified for tax exemption.