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Allowances and deductions under section 10 in India 2019-2020

Section 10 of Income Tax Act

Sections Particulars Exemption limit
Sec 10(1) Agricultural Income (from agricultural land, farm house, or sapling seedling grown in nursery) for self employed Fully exempt from tax
Sec 10(2) Income received from HUF (Hindu-undivided family) by a tax payer in his capacity as a member of HUF Fully exempt from tax
Sec 10(10C) Compensation received at the time of voluntary retirement for salaried employees Exempt from tax up to a certain limit of compensation amount Rs. 5,00,000
Sec 10(10D) Amount received under life insurance policy including policy bonus Fully exempt from tax
Sec 10(11)(12) Amount withdrawn from Provident fund by salaried employees Fully exempt from tax
Sec 10(10BC) Compensation received in case of any disaster from central government Fully exempt from tax
Sec 10(13A) House rent allowance (HRA) to salaried employees (rent paid by the employees to stay in a rented house) Fully exempt from tax and 50% of salary amount if residential house is in metro cities otherwise 40% in non-metro
Sec 10(14) Children education allowance (salaried employees can claim a pre defined allowance for two children) Exemption up to Rs. 100 per month per child
Sec 10(14) Special compensatory allowance for hilly areas or climate allowance or high altitude allowance to salaried employees Exemption up to Rs. 7,000 per month
Sec 10(14) rule 2BB Border area allowance or remote area or any disturbed area allowance to salaried employees Exemption up to Rs. 1,300 per month
Sec 10(14) Tribal area allowance in: Madhya Pradesh, Tamilnadu, Assam, UP, Karnataka, West Bengal, Bihar, Orissa and Tripura to salaried employees Exemption up to Rs. 200 per month
Sec 10(14) Compensatory field area allowance available in various areas of AP, Manipur, Sikkim, Nagaland, HP, UP and J&K to salaried employees Exemption up to Rs. 2,600 per month
Sec 10(14) Transport allowance granted to employee for the purpose of commuting from home to office salaried employees Exemption up to Rs. 1,600 (Rs. 3,200 for blind, deaf and dumb) per month
Sec 10(15) Income from tax free securities to all assesses (Income received as interest from securities, bonds, deposits notified by government) Fully exempt from tax
Sec 10(23D) Income from mutual fund (Any income earned from mutual funds registered under SEBI or set-up by any PSU or authorized by RBI) Fully exempt from tax
Sec 10(34) Income from dividends (Tax paid by the company over the profits is considered as the final payment of tax no further credit to be claimed as dividends) Fully exempt from tax
Sec 10(38) Long term capital gains on transfer of shares and securities Fully exempt from tax
Sec 10(43) Reverse Mortgage (Any amount received by the individual as loan in lump-sum or in installments in transaction of reverse mortgage) Fully exempt from tax
Sec 10(44) New Pension System exemption (Any income received by any person on the behalf of New pension system) Fully exempt from tax
Sec 10(49) Income of National financial holdings company Fully exempt from tax
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