Taxable and Non-taxable allowances
- HRA(House Rent Allowance )
Least of the following is exempted from HRA Received
2) House rent paid minus 10 % of salary(salary means basic plus dp plus da if term of employment so provides)
- 50% of salary(same meaning as above)in case of rented house situated in Bombay,Madras,Delhi or calcutta
-40 % of salary ,if rented house is situated in any other places
- City compensatory allowance :Fully taxable.
- Foreign Allowance :Exempt from IT if paid outside India By the government for services outside India.
- Fixed medical allownace:Taxable.
- Project Allowance : taxable.
- Transport Allowance : Exempted up to 800 per month maximum.
- Tiffin Allowance :Taxable .
- Allowance to meet the cost of travel on tour or on transfer : exempted to the extent allowances used for said purpose.
• Daily Allowance (know as DA or Daily Allowance in TA bill to meet the ordinary daily charges on account of absence from his normal place of duty) : Exempted to the extent allowance used for the said purpose
- Conveyance allowance : To meet the expenditure on conveyance in performance of duties of an official nature:exempted to extent allowance used for said purpose
- Uniform allowance : exempted to the extent used for the said purpose
- Children Education allowance : Rs 100 per month per child up to maximum of two child is exempted if expenses made in India
- Children hostel allowance : Rs 300 per month per child up to maximum of two child is exempted if expenses made in India
- Many hilly area,remote area,field allowances are exempted on various rate
- Any other allowance :generally Taxable.