Administration Manual - B.E.S.T. Undertaking.

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framed by LIC or GIC or any other institution for a sum not
exceeding Rs.10,000/- in a year.
3. Deduction allowed under section 80DD: In case of employees who
have incurred any expenditure for medical treatment, training and
rehabilitation of a handicapped dependent upto the amount as
mentioned in the provision of the Income Tax Act.
4. Deduction under section 80U in allowed on expenditure incurred
towards medical treatment by an assessee being physically
handicapped for more than 40%.
5. Deduction under section 80 C: an employee is entitled for
deduction from gross income for the amount invested in various
investments schemes mentioned in section 80/C upto an extent of
Rs.1,00,000/-.
After allowing all the permissible deductions from the annual gross
income under Head of “salary”, the taxable income is computed on which
tax is calculated as per rates in force. Thereafter, education cess @ 2 % is
levied on the income tax amount. Accordingly, income tax is deducted
from the salary of the employees & remitted to Income tax authorities
with 7 days from the date of salary payment.
As per Finance Bill 2005, women assessors below age 65 shall be
entitled from the gross income amount of income tax calculated after