Tax Exemptions for Employees in India

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What is the maximum exemption limit for monetary benefits received from employers for voluntary retirement?

₹ 5 lakh (correct)

₹ 10 lakh

₹ 3 lakh

No limit

What percentage of commuted pension is exempt from tax if the employee receives gratuity?

¾

½

⅓ (correct)

¼

Which of the following is eligible for tax exemption under the new tax regime?

Conveyance allowance (correct)

Medical allowances

Bonus payments

Overtime payments

What is the tax exemption limit for gifts received from employers?

₹ 5,000 Signup and view all the answers

What is the percentage of commuted pension that is exempt from tax if the employee does not receive gratuity?

½ Signup and view all the answers

Which of the following is eligible for tax deduction under the new tax regime?

Interest on a home loan for a rented property Signup and view all the answers

Which section of the tax code provides exemption on compensation received against natural disasters?

Section 10(10BC) Signup and view all the answers

What is the maximum percentage of salary allowed as House Rent Allowance in metro cities?

50% Signup and view all the answers

What is the main purpose of the special allowance provided by an employer?

To support the employee's expenses incurred while performing duties Signup and view all the answers

Which of the following is not a condition for House Rent Allowance exemption?

Employee is above 40 years of age Signup and view all the answers

What is the condition for tax exemption on income earned by a partner of an LLP/Firm?

The partner's share in the profit is exempt from tax Signup and view all the answers

What is the benefit of Section 10(11) for Sukanya Samriddhi Account holders?

Exemption on tax for payment made from the account Signup and view all the answers

What is the tax exemption available to Non-Resident Indians (NRIs) under Section 10(4)?

Exemption on interest on bonds and securities specified by the government Signup and view all the answers

Who is entitled to enjoy tax exemption on leave travel concession under Section 10(5)?

All employees, including Indian and foreign citizens Signup and view all the answers

Which section of the tax code is subdivided into two parts?

Section 10(14) Signup and view all the answers

What is the condition for the existing employer to receive the leave travel concession?

The employer must receive it in connection with the employee's future travel Signup and view all the answers

How much is Mr. Sharma's income from the firm exempt from tax?

Rs. 2,00,000 Signup and view all the answers

What is the minimum percentage of share in the partnership firm required for tax exemption?

No minimum percentage is required Signup and view all the answers

What is the maximum amount of allowance per month given to army personnel in the Border Area Allowance?

Rs. 1,300 Signup and view all the answers

What is the name of the allowance given to employees working in hilly regions of the country?

Special Compensatory Allowance Signup and view all the answers

Which of the following allowances has a maximum limit of Rs. 3,200 per month?

Island Duty Allowance Signup and view all the answers

What is the rule that exempts income from interest on investments?

Section 10(15) Signup and view all the answers

What is the minimum amount of allowance per month given in the Border Area Allowance?

Rs. 200 Signup and view all the answers

What is the maximum amount of allowance per month given in the High Active Field Area Allowance?

Rs. 4,200 Signup and view all the answers

What is the primary focus of Section 10 of the Income Tax Act?

Income tax exemptions for salaried Indian citizens Signup and view all the answers

What is the maximum income tax exemption limit for citizens above 80 years of age, resident in India?

Rs. 5 lakhs Signup and view all the answers

What is the condition for receiving interest at an approved rate from a foreign nation under Section 10(15)(iv)(c)?

The lending of money must be prior to 1-6-2001 from outside India Signup and view all the answers

What is the exemption limit for citizens below 60 years of age?

Rs. 2.50 lakhs Signup and view all the answers

Which of the following is exempt from income tax under Section 10(15)(iv)(h)?

Interest from any company concerning approved debentures or bonds Signup and view all the answers

What is the exemption limit for citizens between 60-80 years of age, resident in India?

Rs. 3 lakhs Signup and view all the answers