Income Tax

Income tax

Submitted by kantaramh on Mon, 12/01/2015 - 08:46

Respected Sir/Madom !

My father had retired on 31st Jan 2014, Now after the duration of almost 1 year, he is worried about the INCOME TAX on the FINAL SETTLEMENT PAYMENT AND ITS INTEREST received.

Is the final settlement payment and its interest are subject to income tax deduction????

Plz plz plz Help me reg. the matter. My father is very disturbed.


Taxable and Non-taxable allowances

  • HRA(House Rent Allowance )

Least of the following is exempted from HRA Received

1)HRA received

2) House rent paid minus 10 % of salary(salary means basic plus dp plus da if term of employment so provides)

- 50% of salary(same meaning as above)in case of rented house situated in Bombay,Madras,Delhi or calcutta

-40 % of salary ,if rented house is situated in any other places