Download Automated Income Tax Form 16 for F.Y. 2018-19 With Common allowance for Salary Person FY 2018-19 (AY 2019-20)

An allowance is mostly outlined because of the fastened amount of cash that is given often additionally to wage for the aim of meeting some specific demand connected with the service rendered by the worker or as compensation for uncommon conditions of that services.

Following are the ten commonest allowance which each and every salaried person have to be compelled to apprehend and use it for tax designing for the yr 2017-18 (AY 2018-19).

#.	Section	Particulars
1	10(13A)	House rent allowance (HRA) Least of the following is exempted- (i) Actual HRA received (ii) 40% of salary (50% in case of HP in Mumbai, Kolkata, Delhi, Chennai) (iii) Rent paid less 10% of salary* * salary represent Basic+DA (if part of retirement benefit)
2	10(14)(ii)	Child education allowance Lower of the following are exempted- i) Actual allowance received ii) 100/- pm per child up to a maximum of 2 children.
3	10(14)(ii)	Child’s Hostel Expenditure allowance Lower of the following are exempted- i) Actual allowance received ii) 300/- pm per child up to a maximum of 2 children. Use the calculator to Calculate Child’s education and hostel Allowance.
4	10(14)(ii)	Transport Allowance to Employees Lower of the following are exempted- i) Actual allowance received ii) 1600/- pm or Rs.3200/- pm for blind or deaf and dumb May use the calculator! From FY 2018-19, this allowance is not available.
5	10(14)(ii)	Underground Allowance For Mines   Lower of the following are exempted- i) Actual allowance received ii) 800/- pm (working in uncongenial, unnatural climate in underground mines)
6	10(14)(i)	Conveyance allowance (Not a Transport Allowance) To meet the expenditure on conveyance in performance of duties of an office. Lower of the following are exempted- i) Allowance received ii) Amount utilized for the conveyance
7	10(14)(i)	Uniform allowance Lower of the following are exempted- (i) Allowance received (ii) Amount utilized for the conveyance
8	10(14)(ii)	Special compensatory Allowance(Hilly areas) (i) Siachen area of Jammu and Kashmir Rs.7000/- pm (ii) All places located at a height of 1,000 meters or more above the sea level Rs.300/- pm (iii) Specified Areas Rs.800/- pm
9	10(14)(ii)	Border area allowances Amount exempt from tax varies from Rs. 200/- pm to Rs. 1300/- pm
10	10(14)(ii)	Tribal area allowance [Given in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa] Amount exempt from tax is Rs. 200/- pm

Don’t forget to take below-mentioned allowances also!

Sl no	Section	Allowances
	10(14)	Traveling allowance/Transfer allowance Expenses on travel, tour or transfer shall be exempted. The exemption will be limited to the lower of– a. Actual Expenditure b. Amount of allowance provided by the employer
2	10(14)	Daily Allowance To meet the ordinary daily expenditure incurred by the employee on account of his absence from the normal place of duty, due to tour or journey in connection with his transfer. The exemption will be limited to the lower of– a. Actual Expenditure b. Amount of allowance provided by the employer
3	10(14)	Helper/Assistant Allowance To meet the expenditure on a helper engaged for performing the official duty. The exemption will be limited to the lower of– a. Actual Expenditure b. Amount of allowance provided by the employer
4	10(14)	Research Allowance to meet the expenditure on academic research and other professional pursuits The exemption will be limited to the lower of– a. Actual Expenditure b. Amount of allowance provided by the employer

Example:

Name of allowance	Amount of allowance (A)	Actual expense  (B)	Exempted (C) [Lower of A and B]	Taxable [A-C]
Traveling allowance	10000	12000	10000	0
Conveyance allowance	18000	20000	18000	0
Daily allowance	6000	6600	6000	0
Helper allowance	3000	3400	3000	0
Research allowance	8000	11000	8000	0
Uniform allowance	3000	4500	3000	0
Taxable allowance				0
An employee is required to show evidence of the above expenditures. So the question of an excess of allowance over expenditure does not arise.

Source: Rule 2BB of section

Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility Can prepare One by One Form 16 Part B for F.Y.2018-19]