Wednesday, August 31, 2016

Partly Taxable Allowances

Allowances which is received by employee for meeting expenses related to the employer’s business is not taxable in hands of employee to the extent it is actually incurred by employee. This includes allowances such as Travelling Allowance, Conveyance Allowance, Helper Allowance, Uniform Allowance etc.

Exempt for certain limits

For the following allowances, the deduction is limited to the amount mentioned

Transport allowance to employees of transport system (i) 70% of such allowance

(ii)Rs. 10,000 p.m

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