direct tax ready reckoner [updated]

Direct Taxes Ready Reckoner 
Income from “Salaries”
10. Meaning of Salary – Sec. 17(1)
11. Basis of charge – Sec. 15
12. Salary
12.1 Leave salary
12.1-1 Maximum amount not chargeable to tax as specified by the Government
12.1-2 Clarification from the Board


Circular No. 431 dated 12.09.1985
Circular Letter No.: F. 35/1/65—IT(B) dated 5.11.1965
Circular no. 309 dated 3.7.1981
12.1-3 Scope of exemption under section 10(10AA)(ii)
CIT v. R.V.Shahney
12.2 Gratuity [Sec. 10(10)]
12.2-1 In the case of Government employee [Sec. 10(10)(ii)]
12.2-2 In the case of an employee covered by the payment of gratuity act [Sec. 10(10)(ii)]
12.2-3 In the case of any other employee [Sec. 10(10)(iii)]
12.3 Pension
12.3-1 Pension [Sec. 17(1)(ii)] 
Section 89 read with rule 21A
12.3-2 Pension scheme in case of an employee joining C3entral Government on or after January 1, 2004 or any other employer on , before or after January 1,2004
12.4 Compensation received at the time of voluntary retirement or separation [Sec. 10(10C)]
12.4-1 Rule 2BA
12.5 Salary received by a teacher/ professor from SAARC Member States
13. Allowance
13.1 House rent allowance [Sec. 10(13A) and rule 2A]
13.2 Entertainment allowance [Sec. 16(ii)]
Special allowances prescribed as exempt [Sec. 10(14) read with rule 2BB]
13.4 Allowance to High Court and Supreme Court Judges

14. Perquisites – S. 17(2)
Owen v. Pook (Inspector of Taxes (1969)
15. Valuation of perquisites
15.1 Valuation of rent-free unfurnished accommodation [Rule 3(1)]
15.1-1 Central and state Government Employees
15.1-2 Private sector or other employees 
15.1-2a Salary – How to calculate
1) Salary shall be determined on due basis
2) Salary from two or more employers
3) Monetary payments v. Perquisites
4) Gas, electricity, water bills, payment of income tax
15.1-2b Basis of valuation
15.2 Valuation of rent-free furnished accommodation
15.3 Valuation of accommodation provided at concessional rent
15.4 Valuation of perquisite in respect of free domestic servants
15.5 Valuation of perquisite in respect of gas, electricity or water supply provided free of cost
15.6 Valuation of perquisite in respect of free education
Training of employees
Fixed education allowance for children
Payment of school fees  of employee’s children
Reimbursement of school fees of employee’s children
Education facility in employer’s institute
Scholarship – CIT v. M.N. Nadkarni
15.7 Valuation of leave travel concession in India [Sec. 10(5)]
15.7-1 Other points
Meaning of family
Only 2 journeys in a block of 4 years is exempt
Carry-over concession
Exemption is based upon actual expenditure
Exemption is available in respect of fare
Exemption is available in respect of fare
Fixed allowance is not subject to exemption – Dr. Reddy Laboratories Ltd. V. ITO[1996]
15.8 Employee’s obligation met by employer [Sec. 17(2)(vi)]
15.9 Amount payable by employer to effect an assurance on the life of employee [Sec. 17(2)(v)]
15.10 Valuation of perquisite in respect of interest-free loan or loan at concessional rate of interest
15.10-1 SBI Lending rates
15.10-2 When perquisite is not chargeable to tax 
15.10-3 Other points
15.11 perquisite in respect of use of movable assets
15.12 Valuation of the perquisite in respect of movable assets sold by an employer to its employees at a nominal price
15.13 Valuation of medical facilities
15.13-1 Hospital approved by the Chief Commissioner
15.13-2 Prescribed diseases or ailments
15.14 Valuation of perquisite in respect of motor car
15.14-1 Conditions to be satisfied if car is used for official purposes
15.14-2 Other points
Meaning of month
When two or more cars are allowed
Car at concessional rate
Car facility between office and residence
Conveyance facility to judges
Conveyance facility to Chairman/ members of UPSC
15.15 Valuation of perquisite in respect of free transport provided by a transport provided by a transport undertaking to its employees
15.16 Valuation of perquisite in respect of lunch/ refreshment, etc.
Circular no. 15/2001 dated December 12, 2001
15.17 Valuation of perquisite in respect of travelling, touring, accommodation
15.18 Valuation of perquisite in respect of gift, voucher or token
15.19 Valuation of perquisite in respect of credit card
15.19-1Expenditure incurred by employer
15.19-2 Expenditure for official use
15.20 Valuation of perquisite in respect of club expenditure
15.20-1 Expenditure incurred by employer
15.20-2 Expenditure for official use
15.21 Tax on perquisite paid by employer [Sec. 10(10CC)]
RBF Rig Corpn. LIC (RBFRC) v. CIT
15.22 Sweat equity shares – Rule 3
15.23 Employer’s contribution towards approved superannuation fund
15.24 Perquisites received by a teacher/ profession from SAARC Member states
15.25 Any other benefit, amenity, etc.
Circular no. 8/2012 dated October 5, 2012
16. Deductions from salary income [Sec. 16]
16.1 Standard deduction
16.2 Entertainment allowance [Sec. 16(ii)]
16.3 Professional tax or tax on employment [Sec. 16(iii)]
17. Employees’ Provident Fund
18. Approved superannuation fund
19. Approved gratuity fund
20. Tax on salary of non-resident technicians [Sec. 10(5B)]
21. Salary of foreign citizens [Sec. 10(6)]
22. Relief under section 89
22.1 Computation of relief when salary or family pension has been received in arrears or in advance [Rule 21A(2)]
22.2 Computation of relief in respect of gratuity [Rule 21A(3)]
22.3 Computation of relief in respect of compensation on termination of employment [Rule 21A(4)]
22.4 Computation of relief in respect of payment in commutation of pension [Rule 21A(5)]
22.5 Computation of relief in respect of other payments [Rule 21A(6)]
22.6 Procedure for claiming the tax relief – Circular no. 331, dated March 22,1982


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