HRA is a special allowance specifically granted to an employee by his employer towards payment of rent for residence of the employee. Applicable exemption is allowed u/s 10(13A).

Select 'Metro City' if the employee resides in Mumbai, Calcutta, Delhi or Madras. 'Non Metro' incase of other cities in India.

It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000.

Also, HRA received is Fully taxable if it is received by an employee who is living in his own house or if he does not pay any rent.

Allowances granted to an employee to meet the hostel expenditure of his children.

An amount of Rs.300 per month per child, (upto a maximum of two children) is allowed u/s 10(14)(ii) r/w Rule 2BB(2)

Enter the number of children undergoing education in hostel.

Transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty is fully taxable.

However, in case of blind/deaf and dumb/ orthopedically handicapped employees, exemption upto Rs.3200 p.m. is provided under section 10(14)(ii) r/w Rule 2BB.

Where a motor car owned by an employee is used partly for official and partly for personal purposes, reimbursement of expenses for the running & maintenance of the vehicle provided by the employer is exempted as stated below as per Sub-rule (2) of Rule 3.

Engine Capacity upto 1600 cc Rs. 1,800 per month

Engine Capacity above 1600 cc Rs. 2,400 per month

(plus Rs.900 per month, if chauffeur is also provided to run the motor car)

Is Employer liable to contribute under Payment of Bonus Act?

If 'Yes', Bonus is calculated at 8.33% of Basic Pay and DA (drawing upto Rs.21000 p.m)

If the Employer wishes to contribute on salaries exceeding Rs.21000 p.m, enter the amount of bonus so given, in the below field.

Repayment of interest on Housing loan (annual).

Where loan has been availed for Acquisition/Construction of house and such construction is completed within 5 years from the end of the financial year in which the loan is borrowed, deduction is available u/s 24(b), upto a maximum of Rs.2,00,000.

Investments in:

Public Provident Fund (PPF)

Employee’s share of PF contribution

National Savings Certificate (NSC)

Life Insurance premium payment

Children’s Tuition Fee (Full time education of any 2 children)

'Principal' repayment of home loan

Investment in Sukanya Samridhi Account

National Savings Certificate (NSC)

Unit Linked Insurance Plans (ULIPS)

Equity Linked Savings Scheme (ELSS)

Sum paid to purchase Deferred Annuity

Five year deposit scheme (Post Office);

Term Deposit in a Scheduled Bank (5 Years or more)

Senior Citizens savings scheme

Subscription to notified securities/notified deposits scheme

Contribution to notified Annuity Plan of LIC

Contribution to Pension Fund of LIC or other Insurance company.

Employee’s contribution to a Notified Pension Scheme. (National Pension Scheme; Atal Pension Yojana)

Medical Insurance premium, Central Govt Health scheme, Preventive health checkup & Medical treatment.

Where premium paid is for,

Medical Insurance – Self, Spouse, Parents, Dependent children Deduction is Rs.25,000

Medical Insurance – Parents above 60 years of age Deduction is Rs.50,000

Maximum deduction allowed is Rs.1,00,000.

Medical treatment for Handicapped Dependent or payment to Specified Scheme for maintenance of Handicapped Dependent.

This is a Flat deduction irrespective of amount spent.

Where,

Disability is 40% or more but less than 80% Deduction is Rs. 75,000

Disability is 80% or more Deduction is Rs. 1,25,000

Interest on Higher education loan in India/Abroad.

Interest paid for a period of 8 consecutive years, starting from the year in which Assessee starts paying interest.

Deduction is allowed if loans taken for Education of Self, Spouse, Children & any Student for whom Assessee is a legal guardian.

Is Employer liable to contribute under Provident Fund act?

If 'Yes', contribution is calculated on Basic pay & DA as follows:

3.67% into Employees’ Provident Fund (EPF)

8.33% into Employees’ Pension Scheme (EPS)

0.5% into Employees’ Deposit Linked Insurance Scheme (EDLIS)

0.5% for EPF Administrative Charges

The contribution may also be restricted upto salary of 15,000.

Is Employer liable to contribute under Employee State Insurance act?

If 'Yes', contribution is calculated on 'Gross Fix pay' mentioned in the above table at the rate 3.25%

The contribution may also be restricted upto salary of Rs.21,000.

Is Employer liable to contribute under The Payment of Gratuity Act?

If 'Yes', contribution is calculated on Salary as follows:
(Basic pay + DA) x 15/26

Enter the amount that the employer spends on medical or group health insurance on behalf of employees.

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