Taxation - Important Sections

Question Section Description

No.
1 Section 6(1) Mr. John NR

Salaries payabe by Govt. to citizen of

Section 9 (1) India for services rendered outside
(iii) India is deemed to accrue or arise in
India

Section 10(7) Foreign allowance exemption

2 Section 6(1) Mr. Ram NR

Section 5(1) In case of Resident, global income is

taxable

In case of NR, following incomes are

chargeable to tax. 1. I/c received or
Section 5(2) deemed to be received in India, 2. I/c
accruing or arising or deemed to
accrue or arise in India

Section Dividend exemption not available.

10(34)

Section 10(1) Agriculture of

income exemption in case
both R & NR
Life insurance premium paid
Sectin 80C exemption
Section Life insurance premium paid
80TTA exemption
Section Transport allowance exemption
3
10(14) (1600x12)
Section 3(7) Exemption of value of lunch provided
(iii) during office hours
Section
5 Exemption of CEA (100x2x12)
10(14)
Section Transport allowance exemption
10(14) (1600x12)
Exemption of reimbursement of
Section 17 medical bill
HRA :- Least of following. 1. Actual
Section HRA, 2. Rent paid - 10% Salary, 3. 50%
10(13A) salary

Section 6(1)
6 and section To decide residential status
6(6)
7 Section 24 Deduction of interest on loan
1. 30% of NAV, 2. Interest on
8 Section 24 borrowed capital

Gratutiy exemption :- Least of

following. 1. Actual gratuity, 2.
Section Maximum limit (1000000), 3. Half
9 10(10) month salary for completed year of
service ( 15/26 x Last drawn salary x
Completed years of service )

Gratutiy exemption :- Least of

following. 1. Actual gratuity, 2.
Section Maximum limit (1000000), 3. Half
10(10) month salary for completed year of
service ( 1/2 x Average salary x
Completed years of service )

Amount deposited in capital gains

13 Section 54 accunt deposit scheme