INCOME TAX

DEDUCTIONS AND EXEMPTIONS

 80 D:
 Medical insurance premium limit is Rs.15000 and
for senior citizens Rs.20000.


 80 DD:
 Medical treatment of dependent relative with
disability Rs.50000.
 Sevier disability Rs.75000.
 80 DDB:
 Medical treatment for diseases such as AIDS,
Parkinson, cancer etc.(40000 & 60000)

 Conveyance allowance:
 Unspent amount is taxable.

 Transport allowance:
 Exempt up to 800p.m

 Travelling allowance:
 Unspent amount is taxable

 Education allowance:
 Exempt up to Rs.100 p.m / child for two children's.
 Personal Expense allowance:
 70% of such allowance or Rs. 6000p.m which
ever is less is exempt.

 Free Education:
 Exempt up to Rs. 1000/ month per child for two
children.
 Free lunch/ meals:
 Exempted to the extent of Rs. 50/ meal.

 Gift:
 It is exempt up to Rs.5000.
 Fully taxable allowances are:
 academic, research, servant allowance, warden
allowance, family allowance, non-practicing
allowance etc.