Tax Exemptions for Employees in India
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Questions and Answers

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
  • (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?

    <p>₹ 5,000</p> 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?

    <p>½</p> Signup and view all the answers

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

    <p>Interest on a home loan for a rented property</p> Signup and view all the answers

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

    <p>Section 10(10BC)</p> Signup and view all the answers

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

    <p>50%</p> Signup and view all the answers

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

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

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

    <p>Employee is above 40 years of age</p> Signup and view all the answers

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

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

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

    <p>Exemption on tax for payment made from the account</p> Signup and view all the answers

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

    <p>Exemption on interest on bonds and securities specified by the government</p> Signup and view all the answers

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

    <p>All employees, including Indian and foreign citizens</p> Signup and view all the answers

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

    <p>Section 10(14)</p> Signup and view all the answers

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

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

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

    <p>Rs. 2,00,000</p> Signup and view all the answers

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

    <p>No minimum percentage is required</p> Signup and view all the answers

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

    <p>Rs. 1,300</p> Signup and view all the answers

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

    <p>Special Compensatory Allowance</p> Signup and view all the answers

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

    <p>Island Duty Allowance</p> Signup and view all the answers

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

    <p>Section 10(15)</p> Signup and view all the answers

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

    <p>Rs. 200</p> Signup and view all the answers

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

    <p>Rs. 4,200</p> Signup and view all the answers

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

    <p>Income tax exemptions for salaried Indian citizens</p> Signup and view all the answers

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

    <p>Rs. 5 lakhs</p> 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)?

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

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

    <p>Rs. 2.50 lakhs</p> Signup and view all the answers

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

    <p>Interest from any company concerning approved debentures or bonds</p> Signup and view all the answers

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

    <p>Rs. 3 lakhs</p> Signup and view all the answers

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