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Conveyance Allowance
Travelling Allowance
Daily Allowance
Research Allowance
Helper Allowance
Uniform Allowance
Allowances to Government Employee outside India (Foreign Allowance) - Any
allowance paid or allowed outside India by the Government to an Indian
Citizen, for rendering services outside India, is wholly exempt from tax.
If an employee is living in his own house and receiving HRA, it will be fully taxable.
B. Entertainment Allowance
This allowance is first included in gross salary under allowances and then deduction
of 1/5 of salary or Rs.5,000, whichever is less is given to only central and state
government employees under Section 16(ii).
C. Special Allowances to meet personal expenses
There are certain allowances given to the employees for specific personal purposes
and the amount of exemption is fixed i.e. not dependent on actual expenditure
incurred in this regard. These allowances include:
Allowance Name
Exemption limit
Transport Allowance
Underground Allowance
Rs. 3,900/-p.m.
4. Non-Taxable Allowances
Some of the allowances, usually paid to Government servants, judges
and employees of UNO are not taxable. These are:
1.