Can CEA and hostel subsidy be claimed concurrently?

Can CEA and hostel subsidy be claimed concurrently?

The fact that both CEA and Hostel subsidy can be admitted concurrently has also been confirmed by HQrs Office vide their letter No.

Who can sanction children education allowance?

7th Pay Commission latest news: Central government employees are eligible for the monthly Rs 2,250 Children Education Allowance (CEA) per child but as per the Department of Personnel & Training (DoPT) this CEA will go up when the Dearness Allowance (DA) on the revised pay structure goes up by 50 per cent.

What is the current rate of children education allowance?

Decision on Children Education Allowance. It is one of the most awaited hike allowance for central government employees. However, the 7th Pay Commission has advised that the allowance rate for children will continue to be CEA INR 2250 per child and hostel subsidy rate will be INR 6750 per child.

How is education allowance calculated?

Children Education Allowance: If you are receiving children education allowance from your employer then you are eligible to claim a tax exemption under the Income-tax Act. However, the maximum amount exempted is Rs. 100 per month or Rs. 1200 per annum for a maximum of up to 2 children.

What is special allowance salary?

Special allowance is a fixed amount that is given to employees over and above the basic salary in order to meet certain requirements. There is a taxable allowance and an exempt allowance. There are different categories of special allowances.

What is education allowance salary?

Education Allowance: Employees are given a certain amount to educate their children in India. Any sum spent more than the provided limit of Rs. 100 per month per child for maximum two children, is taxable.

What is daily salary allowance?

This is called a per diem or daily allowance. This is an amount given to only cover daily expenses such as housing, travel, and food for official work travel. Being an allowance, it is not taxable in the country the employee is travelling to for short-term periods. Any unspent amount is eligible for income taxes.

How do I calculate my salary allowance?

Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance here the gross salary 660,000. The deduction will be Income tax and provident fund under which the net salary comes around 552,400 .

What allowances are tax free?

Taxable, Non-Taxable and Partially Taxable Allowances AY 2020-21

• Dearness allowance.
• Entertainment allowance.
• Overtime allowance.
• City compensatory allowance.
• Interim allowance.
• Project allowance.
• Tiffin/meals allowance.
• Uniform allowance.

What is fully exempted allowance?

Certain categories of taxes are fully exempted such as allowances given to judges at the Supreme Court and the High Courts. Allowances such as house rent allowance are partially exempted as per Section 10(13A). Other allowances such as city compensatory allowance are fully taxable.

How can I avoid paying tax on my salary?

1. Use up your Rs 1.5 lakh limit under Section 80C.
2. 2) Contribute to the National Pension System.
3. 3) Pay Health Insurance Premiums.
4. 4) Get a deduction on your rent.
5. 5) Get a deduction on the interest on your home loan.
6. 6) Keep some money in your savings account.
7. 7) Contribute to charity.

Do seniors get an extra tax deduction?

When you’re over 65, the standard deduction increases. For the 2019 tax year, seniors over 65 may increase their standard deduction by $1,300. If both you and your spouse are over 65 and file jointly, you can increase the amount by $2,600.

What are the 70 exemptions in income tax?

What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.

Is 80C removed in Budget 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. Further, those with an annual income of INR 10-12.5 lakh will pay 10 percentage points less in taxes, while income of INR 12.5-15 lakh will get a 5 percentage points concession from the current applicable tax rates.

Can we switch between old and new tax regime every year?

The salaried people have right to choose between old tax regime or new tax regime every year but the person with business income cannot go back to the old regime once he opts for new regime unless you discontinue your business.

Is 80C applicable in new tax regime?

The deduction under 80C can be claimed only if an individual opts for the old/existing tax regime in a financial year. If he/she opts for the new concessional tax regime, then he/she will not be eligible to claim these deductions.