Page 9 - HDFC Bank | Take the cut out of your tax cut

Income Tax Eligible Deductions Limit of Deduction
Section Assessee

16 (ia) Salaried A standard deduction of Rs. 50,000/- given to Deduction (Whichever
employee salaried employees subject to the amount of salary is lower)
received. a. 50,000 (Standard
[Note that exemption u/s. 10(14) transport deduction)
allowance (except in case of differently abled)
and reimbursement of medical expenses shall be b. Salary amount
withdrawn.]

17(2)(vii) Salaried The amount or the aggregate of amounts of any Maximum Rs. 7,50,000
employee contribution made to the account of the employee by Annual accretion
an employer by way of interest,

(a) In a recognized provident fund; dividend or any other
(b) In national pension scheme of Central Govt.; and amount of similar
nature to the extent
(c) In an approved superannuation fund it relates to the
contribution which is
included in the total
income.

10(13A) Salaried Any House Rent Allowance given to an employee Lower of below:-
employee a. 50% of Annual
Salary* (40% in
case of non-metros)
b. Actual HRA received
c. Rent Paid – (10% of
Annual Salary).

*”Salary” includes dearness allowances and commission based on a fixed percentage of turnover achieved by an employee, if the terms of
employment so provide, but excludes all other allowances and perquisites.

The above list is not exhaustive and mentioned tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact
calculation of your tax liabilities.

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*Based on Retail Loan book size (excluding mortgages). Source: Annual Reports FY 20-21 and No.1 on market capitalisation based on BSE data as on 31st Dec, 2021