Using Net-SNMP - 1

Hi,

In this N part series, I shall post about

What SNMP is - very, very briefly
Install NetSNMP
Configure NetSNMP
Write a MIB
Use Mib2c to generate stubs for the agent
Populate the Stub code in the agent for the MIB you just wrote
Try and GET snmp to WALK through the NEXT few steps :)

Write more complex MIBs


Ok lets begin then, shall we..........

SNMP (Simple Network Management Protocol) is application layer protocol, mostly used in network devices (i.e. routers, printers, etc). In typical SNMP usage scenario SNMP client sends SNMP Get package to the network device in order to read its properties. When device reports any problems it is also possible to change device configuration using SNMP Set packages. Every device supports various queries (i.e. device uptime) and all of them are described in MIB (Management Information Base).


You can read more about SNMP protocol here: http://en.wikipedia.org/wiki/Simple_Network_Management_Protocol


I told you guys I will be brief :)


Ok ....Now for the Installation ........

First, You will need a Linux System.......because all that I am going to explain next will be for that particular OS

I use Suse Linux 11.2, although I guess RedHat and Gentoo and Debian work just as fine .........

Ok, Login to the linux system ............By the way..............The download is available @ http://net-snmp.sourceforge.net/download.html

You need to pick up the SOURCE of the latest version ......Do not pick up binary, then you cannot play around with the source code. Get the tar.gz , since you will intend to use it on linux (Zip format is for wussies :) )

Ok, so you have the download in your home folder ........ (/home/ folder , where is whatever name you are using to log in.) all ready to be untarred

You will need root privilege to install so issue this command at prompt

$su - root you will be asked for root password , so give that and you are in

Navigate to the home folder where the net snmp tar.gz is kept
Issue this command at the prompt

#tar -zxvf net-snmp-5.5.tar.gz (I happen to be using version 5.5)

It will untar the whole thing and give you a directory like so

# ll
total 5408
drwxr-xr-x 19 274 500 4096 Mar 6 13:57 net-snmp-5.5
-rw-r--r-- 1 root root 5531055 Mar 3 23:21 net-snmp-5.5.tar.gz
#

Navigate into the net-snmp-5.5 directory and you should see something like so




Just have a look at the various README's etc. Or take a break.....or watch TV :) ....Till you are ready to go cracking again.......

The steps you need to do now are
1) Run ./configure
(type "./configure --help" for a quick usage summary.)
(--prefix=PATH will change the default /usr/local installation path.)

2) Optionally edit include/net-snmp/net-snmp-config.h
(due to prompting done by the configure script, this is very rarely
necessary.)

3) make

4) make test (This usually tells you right away whether everything on
the system is good to go or not)

5) make install


Ok......it will take some time....print what its doing all the while..... and then its done

You now have netsnmp installed and ready to use.

Ha Ha .....not quite.......theres still a lot of stuff that needs to be done before we can say .....yup....thats working beautifully.......

Navigate to

1. See if /usr/local/share/bin folder has a bunch of snmp stuff like snmpconf snmptranslate and so on
2. See if the /usr/local/share/snmp/mibs folder and see if all the MIB files are present

Now you have to try some configurations checking

First, give

#net-snmp-config --default-mibdirs


/root/.snmp/mibs:/usr/local/share/snmp/mibs

You should get the reply like so....a list of the directories which are used to pick up snmp MIB data

Now run

linux-725y:/usr/local # net-snmp-config --snmpconfpath

/usr/local/etc/snmp:/usr/local/share/snmp:/usr/local/lib/snmp:/root/.snmp:/var/net-snmp

You should get the reply like so....a list of the paths which are used to pick up snmp configuration data

Now run

# ldd /usr/local/bin/snmptranslate
       linux-gate.so.1 =>  (0x00110000)
       libnetsnmpagent.so.15 => not found
       libnetsnmphelpers.so.15 => not found
       libnetsnmpmibs.so.15 => not found
       libnetsnmp.so.15 => not found

This means that you might get snmp*: error while loading shared libraries:
like for example as mentioned above libnetsnmp.so.20: It cannot open shared object file

If no error comes like above , no need to do anything, but if error comes, then, you have to do the steps below
Edit ld.so.conf in /etc and add the details of the lib path of /usr/local/lib and then run ldconfig

#vi /etc/ld.so.conf

/usr/X11R6/lib/Xaw3d
/usr/X11R6/lib
/usr/lib/Xaw3d
/usr/i386-suse-linux/lib
/usr/local/lib
/opt/kde3/lib
include /etc/ld.so.conf.d/*.conf

#ldconfig

Now you have to tell netsnmp where to look for MIB files. You use the snmpconf command to do this. Issue this command at the prompt

# snmpconf

I can create the following types of configuration files for you.
Select the file type you wish to create:
(you can create more than one as you run this program)

  1:  snmpd.conf
  2:  snmptrapd.conf
  3:  snmp.conf

Other options: quit

Select File: 3

The configuration information which can be put into snmp.conf is divided
into sections.  Select a configuration section for snmp.conf
that you wish to create:

  1:  Debugging output options
  2:  Textual mib parsing
  3:  Output style options
  4:  Default Authentication Options

Other options: finished

Select section: finished

I can create the following types of configuration files for you.
Select the file type you wish to create:
(you can create more than one as you run this program)

  1:  snmpd.conf
  2:  snmptrapd.conf
  3:  snmp.conf

Other options: quit

Select File: quit


The following files were created:

 snmp.conf

These files should be moved to /usr/local/share/snmp if you
want them used by everyone on the system.  In the future, if you add
the -i option to the command line I'll copy them there automatically for you.

Or, if you want them for your personal use only, copy them to
/root/.snmp .  In the future, if you add the -p option to the
command line I'll copy them there automatically for you.

#cp snmp.conf /usr/local/share/snmp/

Finally try this

# snmptranslate -Tp -IR ipMIB
+--ipMIB(48)
  |
  +--ipMIBConformance(2)
     |
     +--ipMIBCompliances(1)
     |  |
     |  +--ipMIBCompliance(1)
     |  +--ipMIBCompliance2(2)
     |
     +--ipMIBGroups(2)
        |
        +--ipGroup(1)
        +--icmpGroup(2)
        +--ipv4GeneralGroup(3)
        +--ipv4IfGroup(4)
        +--ipv6GeneralGroup2(5)
        +--ipv6IfGroup(6)
        +--ipLastChangeGroup(7)
        +--ipSystemStatsGroup(8)
        +--ipv4SystemStatsGroup(9)
        +--ipSystemStatsHCOctetGroup(10)
        +--ipSystemStatsHCPacketGroup(11)
        +--ipv4SystemStatsHCPacketGroup(12)
        +--ipIfStatsGroup(13)
        +--ipv4IfStatsGroup(14)
        +--ipIfStatsHCOctetGroup(15)
        +--ipIfStatsHCPacketGroup(16)
        +--ipv4IfStatsHCPacketGroup(17)
        +--ipAddressPrefixGroup(18)
        +--ipAddressGroup(19)
        +--ipNetToPhysicalGroup(20)
        +--ipv6ScopeGroup(21)
        +--ipDefaultRouterGroup(22)
        +--ipv6RouterAdvertGroup(23)
        +--icmpStatsGroup(24)
linux-725y:/usr/local #

This means that everything that you have installed is working

So now the errors are not going to be there because of configuration ......whatever gets screwed up , it will be because of your responsibilty :)

Next part will deal with How to write a MIB and add code from the agent.

The science behind Shampoo - and how we end up paying more - Always.

Whats true

There’s no shame in admitting that your hair affects your mood. According to a Dove Hair Care survey, one out of every four women has avoided an activity due to unruly hair and 88 percent say good hair boosts their confidence. So for many women, a trip to the shampoo aisle is a much more serious purchase than stocking up on toothpaste and Q-tips.

A 2008 study from market research firm Mintel reported that half of adults find the variety of shampoos and conditioners overwhelming. When Pantene, the shampoo category leader, offers 113 products in 14 different benefit-themed lines, it’s easy to see how the shelves have become so crowded—and confusing.

The good news? The majority of those options boil down to different packaging. “All shampoo is essentially a cleanser,” says Paula Begoun, author of Beautypedia.com. “Only the first five or six ingredients impact the formula’s effectiveness.” And if you do a quick survey of a few shampoo ingredients labels, you’ll quickly see how the top 10 list looks nearly the same on all of them.

Whats in it .....

But what are those ingredients, and what do they do? We broke down the ingredients on the back of the bottle.

1. Water. Up to 80 percent of shampoo is this basic element. Without enough of it, the lathering liquid wouldn’t pour from the bottle.
2. Surfactant. Basically a detergent, this additive does the bulk of the work. Surfates clean by surrounding dirt and oil so water can rinse them away. Ingredients like ammonium lauryl sulfate and ammonium laureth sulfate tend to be easier on sensitive scalps than sodium lauryl sulfate. Rumors that these chemicals can cause cancer are unfounded. While surfactants are irritating, shampoos don't contain high-enough levels to cause any real damage. Surfactants aren’t a problem unless you have sensitive skin or insist on regularly pouring gallons of the stuff in your eyes. And the cleansers shouldn’t be harmful to your hair. The shampoos sold today contain conditioners that compensate for the stripping qualities of surfactants, so you can wash daily without worry.
3. Foaming agents. Ingredients like cocamide or cocamidopropyl betaine provide the satisfying suds that complete the hair-washing experience. Lather, however, is purely aesthetic. “Lather doesn’t have anything to do with how well a shampoo works,” says Ni’Kita Wilson, a cosmetics chemist for Cosmetech Laboratories. “Manufacturers put lathering agents in shampoos because it’s what consumers expect.”
4. An acidic ingredient. Items like sodium citrate or citric acid on your shampoo label are added to keep shampoo at the right pH level. The acidic pH interacts with the hair's slightly negative charge to help the cuticle, the outer layer of the hair, maintain a smooth, flat surface.
5. Silicones like dimethicone, or anything ending in 'one.' These are polymers that deposit a lightweight coating on the hair. They help create smoothness and add shine.
6. Polyquaternium. Much like a fabric softener, it helps make hair more manageable by depositing a fatty conditioner and fighting static. It also thickens the shampoo formula so it’s easier to pour.
7. Panthenol, fatty alcohols, and nut oils. These common additives moisturize and lock in hydration.
8. Midazolidinyl urea, iodopropynyl, isothiazolinone, and sodium benzoate. “Unless you want your shampoo to grow legs and walk away, you need preservatives,” Wilson says. Since many of the other ingredients are made from organic materials, they can grow mold and bacteria. These additives keep your shampoo from turning into a science project.

“Most often, the ingredients lower down on the list aren’t present in high-enough concentrations to have any impact on the shampoo’s performance,” Begoun says. Natural extracts and other additives that manufacturers brag about on the label don’t do much for your hair, but they might make the experience more enjoyable by adding a little color or fragrance to the process. Of course, judging by the number of women (and men) sniffing shampoo in the personal-care aisle of the drugstore, fragrance is a big part of the shampoo equation. To wit: the phenomenon that was Gee, Your Hair Smells Terrific.

The catch

So if all of these ingredients are basically the same, why are some shampoos more expensive? Good question. Price rarely is an indicator of performance. “There’s no reason at all to pay more than $7 for a bottle of shampoo,” Begoun says. In fact, when Consumer Reports tested 1,700 ponytail samples by washing them in a range of shampoos, the expensive options did not produce any better results than the drugstore brands. You won’t see 10 times more results with a $30 bottle over a $3 bottle. “The only way to find out if a shampoo will work for you is by using it,” Wilson says. “Nothing on the bottle, including the price tag, can tell you if you’re really going to like the results.” If you rely on a high-priced brand to ensure a good hair day, you could be sending money down the drain.

Instead of shopping by price, Begoun suggests this strategy to help find the best formula for your hair: your shampoo, she says, should treat your scalp and your conditioner should treat the bottom few inches of your hair. So if you have an oily scalp and split ends, a shampoo formulated for oily hair will remove grease, and a repairing conditioner will help protect the ends.

If that fails? Well, there's always a headband.

The restaurant at the end of the Universe

Came across a wonderful blog explaining the advances we had made - which is now lost in the mists of time - and by the burning down of our heritage - Nalanda and Somnath and all other places which fell under he sword and flame of the heathen barbarians.

This is the link

http://slezall.blogspot.com/

I would recommend everyone have a look, lots and lots of good stuff here

Here i reproduce verbatim one blog, just to show the extent of advancement we had

Value of Pye in Atharva Veda

Value of Pye in Athrava Veda

The transliteration would be as follows -

GoPeeBHaagYa MaDHuvRaaTa SHrunGiSHoDaDHiSanDHiGa
KHaLaJeeViTaKHaaTaaVa GaLaHaaLaaRaSanDHaRa

I have used capitals for those consonants which have to be deciphered for the values. Some consonants which have the emphatic pronunciation have been spelt along with H.

Tamilians are at a disadvantage. Unfortunately Tamil script has very few consonants. I know that Ka in Tamil is written for as many as four sounds - Ka, KHa, Ga and also GHa. So for writing GanGaa in Tamil, one would write KanKaa. Yet Tamil has two "na"s and two "LLa"s. They say that the second "LLa" is difficult to explain to a non-Tamilian.

Devanagaree script has better distinction. Kannada is even more detailed on the vowels, since it also distinguishes "ey" both as short and long, i.e. "ey" in "get" is written differently than "ey" in "Gate". Likewise there are short and long "oe"s in Kannada, to spell "notice" and "goat" differently.

Coming back to value of Pye, Values of identified consonants are to be put in by the "Sootra"s, which are also embedded in the jpg file. They are -
Kaa-di Nava, i.e. Ka =1, KHa = 2, Ga = 3, GHa = 4, GNa = 5, Cha = 6, ChHa = 7, Ja = 8 and JHa =9
Taa-di Nava, i.e. Ta =1, THa = 2, Da = 3, DHa = 4, NNa = 5, ta = 6, tHa = 7, da = 8 and dHa =9
Paa-di Panchak i.e. Pa =1, PHa = 2, Ba = 3, BHa = 4, Ma = 5
Yaa-dyashtaka i.e. Ya =1, Ra = 2, La = 3, Wa = 4, sha = 5, SHa = 6, Sa = 7, Ha = 8
Ksha-sh Shoonyam i.e. Ksha = 0

So, the sootras provide 4 options each for 1, 2, 3, 4 and 5, three options each for 6, 7, 8, two options for 9 and only one option for zero. Options help to put values into verse form. In Americapeople get telephone numbers which can be spelled to denote the activity of the company. For example, the company publishing a magazine “SkyMall” has its number 1-800-759-6255. When spelled, it becomes 1-800-SkyMall, because number 7 on telephones stands for letter S, number 5 for K and so on.

In this shloka for value of Pye, the first line is also an ode to Lord Krishna, as is clear from the mention of Gopi-Bhagya. The second line is ode to Lord Shiva, as can be read from "Gala-Haalaarasam-Dhara", one who wears a serpent around his neck. So, the shloka is both, prayers and value of Pye!!!

From the scientific mode of calculator available on computers the value is

3.1 41 59 26 53 58 97 93 23 84 62 64 33 83 27 95

Value from Shloka as deciphered is -

Go Pee BHaag Ya Ma DHuv Raa Ta SHrun Gi SHo Da DHi San DHi Ga
3 1 4 1 5 9 2 6 5 3 5 8 9 7 9 3
KHa La Jee Vi Ta KHaa Taa Va Ga La Haa Laa Ra San DHa Ra
2 3 8 4 6 2 6 4 3 3 8 3 2 7 9 2

In the shloka, the last digit denoted by the letter Ra becomes 2. In the calculator it is 5. All the rest 31 digits are identical.

The point of curiosity is, why did Rushees of Athrva-Veda need such accurate value of Pye to the thirty-second digit? Simple explanation is that they have been great astronomers. Most eminent among them was Maharshi Bhrugu, as acknowledged by none other than Lord Krishna in the tenth chapter in Geetaa. "MaharsheeNNaam Bhruguraham"!! He composed Bhrugu-samhitaa, which is the reference work for all uses of astronomy, most common being in Astrology.

Astronomy is study of Universe, Geography is study of only the Earth. And to get exactitude in the study of astronomy, orbits, spatial positions and velocities of different planets with reference to a fixed reference, the Sun, such value of Pye was needed. How such accurate value was derived is another curiosity. But we know that the mathematics of Indian almanacs gives accurate prediction of eclipses, their exact timings - sparsh-kaala, moksha-kaala and geographical boundaries of areas from where an eclipse would be visible, also whether it will be a whole eclipse, Kha-graasa or partial, Khanda-graasa. The base for all this is Bhrugu-Samhitaa, the sage, who had the grasp of the whole Universe, MaharsheeNNaam Bhruguraham!!

In defence of the Tata Nano Part 2

So I wanted to further complain about the carping being done about the TATA Nana.

Observe:

You probably haven’t heard of Goggomobil. Goggomobil was car made in Germany from 1955 to 1969. This was the period of time that Germany was still getting on her feet economically, not unlike India today. The Goggomobil was…

all of 9′6″feet long and 4′3″ wide. It had a 15HP engine mounted in the rear (like a VW bug or the Nano) and 10″ wheels. It seated 4 and (unlike the Nano) had 2 windshield wipers. They made 250,000 of them, so someone liked them.

Look at this model below. And I mean the car......
This then was the Fiat 500 which was 9′9″ long, 4′4″ wide, and weighed a tiny 1100 pounds. They made 3.6 million of them.

Then, of course, you can’t forget the the Subaru 360. Japanese style cute. This was 9′10″ long, and 4′3″ wide. It weighed a whopping 900 lbs. Now, if the Subaru 360 looks like a bit of freak to you, you have willfully chosen to ignore history. This was not some Japanese only oddity. The Subaru 360 was the first car Subaru sold in the US, back in 1968. This is what launched Subaru US. (Consumer Reports said it was a death trap, by the way.)

All of the cars above are smaller than the Tata Nano. None of them are as fast, or as safe. The Subaru is unique in getting better gas mileage (66MPG by US test method).

Stop whining about how small the Nano is! It’s not small! It’s not (within its market segment) dangerous. It’s not polluting. Read some history. Read some facts. This......is the car of the future.

In defence of the Tata Nano

Automobiles are one of the single largest things we do. Transportation is a huge slice of the economy. Where roads and bridges can and cannot go is a huge social issue. The design of cities, land use, environmental concerns, tax laws, sustainable wage… all these things are touched and shaped by cars. So cars a pretty good pulse on society.

Enter the Tata Nano.

In case you live in a cave, the Tata company in an Indian super company. It includes 98 companies selling in 85 countries. 20% of global steel production is by Tata. Tata’s dealings make up 3.2% of India’s GDP, making them the de facto majority shareholder of an entire country, much like GE in America.

Despite all that, when Tata announced that their automobile division would make a car for $2500 no one really cared. It was assumed that they would make yet another auto rickshaw. But, Tata had been underestimated. What they produced was not some spindly three-wheeler. It was a real car in every way. Observe the specs:

SOHC 624cc Fuel injected Twin

12″ wheels

4 wheel hydraulic brakes

Meets current India and EU emissions and safety requirements.

So naturally, everyone hated it. Now, I shouldn’t say everyone. We, the middle class never-owned-a-car-before people of India are pretty excited, actually. But people who will never buy one are really upset.The number one complaint: because it is so cheap people who didn’t own cars before will buy them increasing global warming and reducing available fuel supply, raising prices.

Well, thats just plain dumb. People who can afford the Tata Nano are using motorcycles and auto rickshaws. The vast portion of which are fitted with early model 2 cycle engines. World wide, two strokers make up about 5% of the engines. And 32% of the pollution. Replacing wheezing 2 strokes with Nanos reduces emissions.

Number two complaint: its not safe.

Again, just plain dumb. Nothing is 100% safe. Life is risk. Successful life is risk management. Yes, driving a Tata Nano is not as safe as hiding in bunker. Who cares? The people who are buying Nanos are people who were driving motorcycles previously. They are safer in Nanos than on motorcycles. Again net reduction in problems. They also meet EU standards. Since pollution is based on parts per million of pollutants rather than pollutants per car, even that doesn’t tell the whole story. A Tata Nano puts out significantly less pollution per car than say.....a Volkswagen Golf, because the Tato has a significantly smaller engine of approximately the same efficiency per cc.

Third complaint: They will reduce global fuel supply. *sigh* Ok, there might be some truth in this, but I just can’t get my underwear in bunch about it. As long as SUV s are the preferred form of transportation in the US, I don’t think anyone in the US has right to complain about a 12′ long car that gets over 50 MPG.

Fourth complaint: No, I’m not joking. People really complain about this: the wheels are too small. This is too is very dumb. To this issue and all the above I raise the issue of the kei car. Kei cars are a special legal qualification of cars in Japan. If a car meets certain kei car guidelines it can be sold as a kei car, saving both the purchaser and the producer a bundle of money. The requirements are 11′ feet long, 4.5′ wide, 6.5″ tall (they make kei spec vans and four by fours as well, hence the generous height) and a 650cc engines. In one form or another the Japanese have been making kei cars for more than 50 years. As of 2004, they were making 2 million of them a year. Many a kei jidosha (light car) has the similar features to the Nano.

So why has the Nano raised such ire in a country it can’t even be sold in?

Here’s the human issue that the first paragraph eluded to: though people complain that they shouldn’t be sold because they are unsafe, I never here this argument about motorcycles and bicycles, which offer no protection what-so-ever in a crash. So there must be an underlying emotional reason that people feel they are unsafe. I think people have an emotional need to drive a very large gas guzzling car. The existence of people who don’t have that need offends them, so they invent data (which is wrong) that says those people shouldn’t be allowed to buy the car.

The person who drives a car purely out of regard for safety and makes the majority of their other decisions out of a sense of what is safe, is leading a small boring life. Relationships consist of risk. People who take no risks have no relationships. So these people end up pretty unfulfilled. When they see people taking risks and getting more enjoyment out of their life, it really pisses them off, so they try and legislate any risks others might want to take about of existence.

Income Tax 2

1. What is Salary income?
Income under heads of salary is defined as remuneration received by an individual for services rendered by him to undertake a contract whether it is expressed or implied. According to Income Tax Act there are following conditions where all such remuneration are chargeable to income tax:
• When due from the former employer or present employer in the previous year, whether paid or not
• When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due or before it becomes due.
• When arrears of salary is paid in the previous year by or on behalf of a former employer or present employer, if not charged to tax in the period to which it relates.

2. What type of income falls under Salary income?
Under section 17 of the Income Tax Act, 1961 there are following incomes which come under head of salary:

• Salary (including advance salary)
• Wages
• Fees
• Commissions
• Pensions
• Annuity
• Perquisite
• Gratuity
• Annual Bonus
• Income From Provident Fund
• Leave Encashment
• Allowance
• Awards

3. What is Leave Encashment?
Leave encashment is the salary received by an individual for leave period. It is a chargeable income.

4. What is Annuity?
It is an annual income received by the employee from his employer. It may be paid by the employer as voluntarily or on account of contractual agreement. It is not taxable until the right to receive the same arises. Under section 56, Income Tax Act, 1961 other annuities come under a will or granted by a life insurance company or accruing as a result of contract which comes as income under from other sources.

5. What is Gratuity?
It is salary received by an individual paid by the employee at the time of his retirement or by his legal heir in the case of death of the employee.

6. What is Allowance?
It is the amount received by an individual paid by his/her employer in addition to salary. Under section 15 of the Income Tax Act, 1961 these allowance are taxable excluding few conditions where they are entitled of deduction/ exemptions.

Under Income Tax Act following types of allowance are defined:

1. House Rent Allowance:
   Under sections 10(13A) of Income Tax Act, 1961 allowance is defined as an amount received by an employee paid by his/ her employer as a rent of his/her house. It is a taxable income. There is no exemption in tax if he is living in his own house or house for which he is not paying rent. There are following amount which are exempt from tax:
   • Actual house rent paid by that individual
   • Rent paid for the accommodation over 10% of the salary
   • 50% of the salary if house is placed at Delhi, Mumbai, Kolkata, Chennai or 40% of the salary in it is placed in any other city.
2. Entertainment Allowance:
   It is the amount paid by employer for availing entertainment services. Under section 16(ii) of Income Tax Act, 1961 it is entitled to deduction in tax from is salary. But in this case deduction is given to his gross salary which also includes entertainment allowance. Deduction in tax against this allowance can be divided into two parts:
   In case of Government employee entitled to minimum deduction of:
   • Entertainment allowance received
   • 20% of basic salary excluding any other allowance
   • Rs. 5000
   In case of other employee entitled to minimum deduction of
   • Entertainment allowance received
   • 20% of basic salary excluding any other allowance
   • Rs. 7500
   • Entertainment allowance received during 1954-1955
3. Other Special Allowances
   • Children Education Allowance
   • Tribal Area Allowance
   • Hostel Expenditure Allowance
   • Remote Area Allowance
   • Compensatory Field Area Allowance
   • Counter Insurgency Allowance
   • Border Area Allowance
   • Hilly Area Allowance

Following allowances are exempt from income tax:
Allowance given to a citizen of India, who is a government employee, for rendering services outside India

• Allowances given to Judges of High Courts
• Allowance given Judges of Supreme Court
• Allowances received by an employee of UNO

7. What is Perquisite?
Under section 17(2) of Income Tax Act, 1961 perquisite is defined as:

• Amount paid for the rent-free accommodation provided to the assessee by his employer
• Any concession in the matter of rent respecting any accommodation provided to the assessee by his employer
• Any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
  1. By a company to an employee, who is a director thereof
  2. By a company to an employee being a person who has a substantial interest in the company
  3. By any employer to an employee whose income under the head 'Salaries' exceeds Rs.24000 excluding the value of non monetary benefits or amenities
  4. Any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee
  5. Any sum payable by the employer whether directly or through a fund, other than a recognised provident fund or EPF, to effect an assurance on the life of the assessee or to effect a contract for an annuity

There are following perquisites which are tax free:

• Medical facility
• Medical reimbursement
• Refreshments
• Subsidized Lunch/ Dinner provided by employer
• Facilities For Recreation
• Telephone Bills
• Products at concessional rate to employee sold by his/ her employer
• Insurance premium paid by employer
• Loans to employees by given by employer
• Transportation
• Training
• House without rent
• Residence Facility to member of Parliament, judges of High Court/ Supreme Court
• Conveyance to member of Parliament, judges of High Court/ Supreme Court
• Contribution of employers to employee's pension, annuity schemes and group insurance

Tax benefits on Housing Loan

Loans are very important for all of us to realize some of our major dreams in time. We all look forward different kinds of benefits from loans we take. Of course it may be less interest rate, low processing fee, easy documentation, time taken to release the loan and finally, the very important thing we expect from a loan is Tax Benefit.

Tax benefits from loans are in different types and even it depends on the nature of loan taken. We take loan for personal use or to fund for our children’s education or construction of our house. We don’t get any tax benefit from the loan taken for our personal use. But of course we can claim tax exemption on the loan taken for education and house construction. As I have posted an article on Tax Benefits on Educational Loan, now I am giving you the complete details of tax benefits which can be availed on Home loan or the loan taken to construct a house.

Nowadays, it is very difficult to fund the entire amount for your house construction, because of skyrocketing real estate prices and construction costs. Therefore, we all take home loans from different banks at different rate of interest. It is again very difficult to repay the loan, but if you do your financial planning and tax planning properly, you can save a huge amount legally by considering the prevailing tax laws.

According to the income tax laws applicable, the interest paid on the capital borrowed for the acquisition or construction of house property is eligible for deduction up to the maximum limit of Rs 150000 per annum. You also get a 20% rebate on repayment of principal of the housing loan per annum. While this was earlier subject to a maximum of Rs 10,000, it is now Rs 1,00,000 and people can avail this benefit under section 80c of the income tax Act.

Points to be considered:
You should be residing in the home for which the loan is taken. If you are residing in a city but buying property in your home town to prepare for retirement, this will not be applicable. The property has to be acquired or constructed before April 1, 2003. The money should have been borrowed to construct or acquire property on or after April 1, 1999. If it was prior to this date, the deduction is only valid up to Rs 30,000.

You may find it more convenient and cheaper to finance the property out of your own resources. But do remember, you would be losing the tax shelter on account of the deduction available as well as the tax rebate. You can claim a rebate for housing loan only on producing the interest certificate from the lending institution. Taking a loan from a family member or a friend, who may get you a loan at cheaper rate of interest, or no interest at all, but will not qualify for such deductions. Only loans taken and interest paid thereon, to specified financial institutions which offer housing loans, qualify for deduction under the Income Tax Act, 1961.

If the loan is jointly taken by you and your spouse, you both are entitled to tax benefits. Since both will be claiming the deductions and rebate, you will have to approach the financial institution and ask for a certificate. This certificate will state how much of the loan is your responsibility and how much you are contributing towards the repayment. Your tax deduction and rebate can be calculated based on this amount.