ITR Tips: Make sure to include these allowances while filing ITR, you will save a lot of tax..
The month of filing income tax returns (ITR Filing Tips) is going on. The Income Tax Department has fixed 31 July 2024 as the last date for ITR filing. Employed people take plans under savings schemes to save tax, but there is no need to take all kinds of measures for tax saving (Tax Saving Tips). Tax saving measures are also given in the salary you get every month. For this, only you should be aware. The allowances received in your salary are the biggest measures for tax saving. Let's know about them.
House Rent Allowance
House Rent Allowance is included in the salary received by all the employees and officers working in the government and private sector. Many companies give house rent allowance to their employees.
House rent allowance includes about 40-50 percent of your basic salary. House rent allowance is mentioned in the salary slip received from the company. Tax can be saved by showing this in the ITR form.
Transport or Conveyance Allowance
Instead of the expenses incurred in going to the office from home to work, the company gives transport or conveyance allowance to the employees. This allowance is also included in the salary of the employees. Tax can be saved by showing this in the ITR form.
Entertainment Allowance
Entertainment Allowance also helps a lot in saving tax. Many companies give entertainment allowance of 2 to 3 thousand rupees every month to their employees. This allowance is also included in the salary of the employees. Tax exemption can be obtained by showing this in the ITR form.
Leave Travel Allowance
Almost every company in the country gives Leave Travel Allowance (LTA) to its employees. Under this, if an employee goes somewhere to travel, then he is given an allowance by the company. Any employee can go on a long tour twice in four years. Up to a certain limit, his expenses can be reimbursed under Leave Travel Allowance. With special conditions, this also gets the benefit of tax exemption. Now it is important to know what is this special condition.
Who can claim tax exemption from LTA?
Under Leave Travel Allowance, all employees of the public and private sector can claim tax exemption in ITR. This exemption applies to expenses incurred on domestic travel within India for the employee, the employee's wife, children, dependent parents, and siblings. Eligible travel modes include flight (economy class), train, or bus. Only the actual cost of travel tickets (airfare, train fare, bus fare) is exempt from tax.
Children's Education and Hostel Allowance
If an employee has a child, then according to his age and qualifications, he can get an education or hostel allowance. Under Children Education Allowance, a maximum of two children can be exempted from tax of Rs 100 per month, i.e. a total of Rs 2400 per year.
At the same time, if the child of an employee lives in a hostel, then an additional exemption of Rs 300 per month can be obtained for each child under the Hostel Expenditure Allowance. This can be a maximum of Rs 7200 per year. This exemption is applicable only to taxable income.
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