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Section 10(11) -All Exemptions and Allowances

23 Dec 2021
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What is Section 10(11) of the Income Tax Act?

Salaried employees are eligible for a tax exemption under Section 10 (11) of the Income Tax Act of 1961. Section 10 of the Income Tax Act exists to reduce the impact of tax structures such as rent allowances, allowances for children's education, travel allowances, gratuities, and so on.

 

Under Section 10(11) of the Income Tax Act, certain categories of income are eligible for exemptions. Continue reading to know more about it!

Exemptions under Section 10(11) of Income Tax Act

Under this clause of the Income Tax Act of 1961, some types of allowances are termed special allowances. These unique allowances are listed below for your convenience:

 

  • High court justices have been awarded exceptional allowances under this part of the income tax legislation.

  • Employees of the UNO are eligible for this benefit.

  • The sumptuary allowance is available to judges of the Supreme Court and the High Court.

  • This allowance is available to Indian citizens working as government employees in countries other than India.

Exemptions under Section 10 (11A) of Income Tax Act

This is an income tax exemption for anyone working outside India and representing India in that country, according to Section 10(11A) of Income Tax Act:

 

  • These individuals, such as top-ranking Embassy officials, trade commissioners, and other officers, are entitled to the advantages of this provision.

  • Employees of foreign enterprises are also eligible for tax benefits under this act, subject to the following restrictions:

  • In India, a foreign company should not do any business or trade.

  • In India, an employee's living tenure should not exceed 90 days.

  • The employer's pay is not allowed to be deducted under this act.

Other Exemptions Under Section 10

  • Compensation for working in high-altitude or mountainous places is included in the climatic allowance.

  • Armed Forces troops stationed in the border area, distant locations, or in any troubled areas are paid an allowance under Rule 2BB of Section 10 (14)(ii).

  • Children's education fund: This Section 10 (14)(ii) exemption provides for a maximum of Rs 100 per kid, up to a total of two children.

  • Counterinsurgency allowance: Section 10 (14)(ii) directs a grant of Rs 3,900 per month to persons working in the Armed Forces for counterinsurgency.

  • Members of the Armed Forces stationed in the Andaman and Nicobar Islands or the Lakshadweep Group of Islands are eligible for an exemption of Rs 3,250 per month under Section 10 (14)(ii).

  • Daily allowance: This refers to daily pay granted to offset expenses spent while on an official tour or while relocating to a new employment.

  • Employees are given a travel allowance to cover their travel expenditures when on an official tour or during a job transfer. It covers costs associated with moving personal belongings, for example.

  • Helper Allowance: This exemption is for the fee of a helper recruited to assist in the performance of official duties.

  • Uniform Allowance: If your office requires you to wear a uniform while on duty, you can get a uniform allowance to offset the cost of purchasing and maintaining your uniform.

  • Conveyance Allowance: This stipend is given to cover the costs of official travel. This does not cover the expense of transportation from home to work.

  • Exemption for Research or Academic Training: This exemption is offered by educational and research institutions to encourage research or academic training, education, and other activities.

Frequently Asked Questions (FAQs)

  • ✔️What is the income-tax administrative framework?

    The Ministry of Finance is in charge of the Indian government's revenue functions. The Central Board of Direct Taxes has been tasked by the Finance Ministry with the job of administering direct taxes such as income tax, wealth tax, and so on. The CBDT is part of the Ministry of Finance's Department of Revenue.

     

    The CBDT provides critical inputs for direct tax policy formulation and planning, as well as administering direct tax laws through the Income-tax Department. As a result, the Income-tax Department administers the Income-tax Law under the administration and supervision of the CBDT.

  • ✔️What is the time period during which a person's earnings are considered for income tax purposes?

    A person's annual income is subject to income tax. Under the Income Tax Law, a year begins on April 1st and ends on March 31st of the following calendar year. The year is divided into two categories by the Income Tax Law: (1) previous year and (2) assessment year. The prior year is the year in which money is earned, and the assessment year is the year in which the income is taxed.

  • ✔️ What does regular assessment tax entail, and how is it paid?

    Every individual is responsible for appropriately computing and paying his or her taxes under the Income Tax Act. When the Department discovers that income has been understated and that tax is owed as a result, it takes steps to calculate the exact tax amount that should have been paid. Tax on regular assessment is the name given to the demand placed on the person. The regular assessment-400 tax must be paid within 30 days of receiving the demand notification.

  • ✔️Is my liability under the Income Tax Act discharged once my taxes have been paid?

    No, you are responsible for ensuring that the tax credits are available in your tax credit statement and TDS/TCS certificates, and that full details of your income and tax payment are given to the Income-tax Department in the form of a Return of Income, which must be filed by the due date.

  • ✔️What is the role of an Assessing Officer?

    He or she is an officer of the Income Tax Department with jurisdiction over a specific geographical region in a city/town or a group of people. You can learn about the officer in charge of enforcing the legislation from the PRO or the Departmental website, which may be dependent on your geographical jurisdiction or the type of income you receive.