Income Tax calculator: Know about these allowances before filing your ITR
Income Tax Allowances are those which are given by the recruiter to its employees on the basis of the employee's requirements, say tax and investment experts.
As the current financial year is about to end, people are busy filing their Income Tax Return (ITR). However, there are some conceptions about the allowances that people must know before filing their income tax return and Income Tax Allowance is one of them. As per the investment and tax experts, Income Tax Allowance can be segregated into taxable, non-taxable and partially taxable. Hence, one must ensure about it before filing his or her ITR.
Speaking on the matter Jitendra Solanki, a SEBI registered tax and investment expert told Zee Business online, "Income Tax Allowances are those which are given by the recruiter to its employees on the basis of the employee's requirements." Solanki said that allowances can be classified into three categories — taxable, non-taxable and partially taxable. Allowances like child education are exempted from any income tax provided the person produces the bill against the variable. Similarly, travel allowances are partially exempted while HRA is taxable.
Calculate Your Income TAX Here - https://www.zeebiz.com/personal-finance/income-tax-calculator
As per the Income Tax Department website, "(Income Tax) Allowances are fixed periodic amounts, apart from salary, which is paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc." The website clearly mentions, "Perquisites are benefits received by a person as a result of his/her official position and are over and above the salary or wages. These fringe benefits or perquisites can be taxable or non-taxable depending upon their nature. Uniform allowance is exempt to the extent of expenditure incurred for official purposes U/S 10(14)."
See Zee Business video below:
— Zee Business (@ZeeBusiness) March 20, 2019
Hence, the person going to file its ITR must check about the allowances and the category under which it falls in Income Tax Act.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.