Conveyance allowance is exempt up to Rs 800 per month. In your case, Rs 1,200 per month will be added to your salary income.
Any allowance received for encouraging academic research and other professional knowledge or the books and periodicals for this purpose are fully exempt from income.
Any medical allowance received is taxable, but reimbursement by your employer of your medical bills, subject to the maximum limit of Rs 15,000 is not taxable.
Children education allowance and allowance to meet hostel expenditure are exempt up to Rs 100 per month and Rs 300 per month respectively per child for a maximum of two children. In your case the extra amount received by you, shall be included in your income.
Arrears of salary are taxable. However, u/s 89(1) of Income-tax Act, 1961 benefit of spread over of income to the years to which it relates can be availed for lower incidence of tax. Your school / employer should consider relief u/s 89(1) for the purposes of calculating your tax liability.
I am a self-employed professional and also give camera and other equipments on hire. I claimed a refund of Rs 23,000 of TDS for the assessment year 2010-11. I went to the Income tax office and met the staff. One of the Staff members was so considerate that he opened up his computer and informed that the refund was worked out but pending at CPC because of my failure to report my bank account details in my IT Return. The staff advised me to revise my Return and mention my bank details. I am grateful and wish to point out that still there are people in Government who are doing their duties conscientiously.
After I got two refunds out of the five refunds due, I was wondering what the reason for delay in refund was. Someone suggested I look up the internet IT site for details. I was surprised to see that the reason given was “Wrong Address”.
When two refunds could be received – where this “Wrong Address” comes in beats me.
I was a frequently transferred employee, always required elsewhere. At one of the postings the ITO told me that I should ensure that the IT Department is advised every time I moved from a station. I clarified if he was wanting to be also marked a copy of the transfer orders, and he confirmed, that this was what the Dept required.
I filed my tax return for the year 2011-12 before 31.07.2011. I am a Doctor in a Hospital getting salary. My tax was deducted at source, but somehow while uploading the TDS, in my PAN, by mistake digit 8 was put as 6. Instead of refund of Rs 16,000, I was served a demand notice to deposit Rs 4,89,000. I have approached my Assessing Officer several times. Every time he says that it is to be sorted out at CPC, Bangalore. I have written to CPC, Bangalore also, but have not got any response so far. I am so busy in the Hospital that personally I am not able to visit the Income tax office.
Dear Sir, good to hear that a few former tax officers like you have come forward to help us. I am an ordinary taxpayer. Let me share with you one my experiences with the tax authority. This is not a complaint, but a lesson for my other taxpayers like me who are hesitant to approach a taxman. I did not get my tax refund dues for two years. The amount was about Rs. 27,500. I had submitted my TDS certificates, all in original. I went to a CA friend to find out what’s the problem. He checked something on the net and told me that I need to visit to the I-T office, so and so ward. Very hesitantly, I reached the income tax office and explained my problem to the person concerned. The babu sitting there was a bit rude but immediately checked out the files and told me the problem. My employer did not deposit the tax deducted from us, he said. I came back, met our accounts department people. In two months’ time, the problem was resolved. I was pleased that the I-T department sent me the refund amount directly to my bank account. The lesson here is: don’t get scared of taxmen. Visit the office yourself, find out the problem.