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EXEMPTIONS AND DEDUCTIONS FOR SALARIES FOR F.Y. 2015-16

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EXEMPTIONS & DEDUCTION FOR SALARIES FOR F.Y.2015-16 House Rent Allowance (HRA): Actual HRA received.Rent paid less 10% of salary.40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi). In this case, salary is basic plus dearness allowance (basic+DA).
Leave Travel Allowance LTC or LTA is exempted if the same is actually spent Transport Allowance tax exemptionis Rs 1600/month. Children Education Allowance It is Rs. 100 per month per child up to a maximum of 2 children. Hostel Subsidy It is Rs. 300 per month per child up to a maximum of two children. Section 80CCC: Deduction For Annuity Plan There are some limitations on this deduction.You can’t contribute more than 10% of your salary or gross income.You can’t enjoy the deduction of more than Rs 1 lakh in a year.
Section 80CCD(1) :  Contribution For Pension Plan Similar to annuities, contribution in pension plans is also eligible for tax deduction. For example contribution to National Pension Scheme (NPS) wi…