This income from salary calculator is applicable for ay 2015-16 and is exactly similar to how it would appear in shecule S of form ITR-2 to be submitted as Income tax Return for Assessment Year 2015-16 by Individuals and HUFs not having Income from Business or Profession.
- Calculation of Income from Salary taxable in the hands of an employee.
- Fully taxable Allowances
- Allowances which are only partially taxable
- Allowances which are fully exempt from tax
Taxable Income from Salary Calculator
If you have income from House Property in addition to salary income,you may use our Income from house Property Calculator here to determine the taxable income under that Head which would help you fill Schedul HP of income tax return ITR-2.
Fully Taxable Allowances
The following are some examples of fully taxable allowances. However, you must remember that these are only illustrative and not the full list of taxable allowances.
- Dearness Allowance and dearness pay
- Fixed medical allowance
- Tiffin allowance
- Servant allowance
- Non practicing allowance
- Hill allowance
- Warden/ Proctor allowance
- Deputation allowance
- Overtime allowance
- City Compensatory allowance
- Telephone allowance
- Holiday allowance
- Special qualification allowance
- Any other allowance
Partially Exempted Allowances
|Type of Allowance||Amount Exempt from Tax|
|(i)||House Rent Allowance.||Least of the following is exempt from tax and the balance is table.
|(ii)||Entertainment Allowance.||This is allowable as a deduction under Section 16 for a goverment employee along with any tax on employment. The whole of such amount received is included in Income from Salary and then the least of the following amounts shall be allowed as deduction under Section 16
|(iii)||special Allowance for performance of official duties.||These allowances are exempt to the extent of actual amount received or the amount spent for the purpose of such official duties, whichever is less. A few examples of such allowances are Travelling allowance, Daily allowance, Helper allowance, etc.|
|(iv)||Transport Allowance.||This allowance is typically provided for the purpose of commuting between office and home and it is exempt upto Rs.800 p.m. However, in the case of blind or physically handicapped, exemption is provided upto Rs. 1600 p.m.|
|(iv)||Children Education Allowance.||This allowance is exempt to the extent of the least of the following.
|(iv)||Children Hostel Expenditure Allowance.||This allowance is exempt to the extent of the least of the following.
|(iv)||Tribal Area Allowance.||This allowance is exempt to the extent of the least of the following.
Fully Exempted Allowances
The following are some fully exempted allowances and these are typicslly available only to certain categories of citizens.
- Any foreign allowance paid by the government of India to an Indian citizen outside India for rendering services abroad. This typically covers government employees working in Indian consulate and embassy offices situated in a foriegn country. Nature of such allowances can be anything and may include for e.g. Overseas allowance, Children Education allowance, etc.
- Sumptuary allowances – These are typically allowances given to High Court/ supreme Court Judges and they are fully exempt from income tax.
- All allowances paid by UN organizations to its employees are fully exempt from income tax.