Special Allowances - [Section 10(14)]

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Exemption CATEGORY-1 Exempt lower of: Amount of Allowance Received OR Amount Spent Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office Exempt to the extent of expenditure incurred for official purposes Travelling Allowance to meet the cost of travel on tour or on transfer Exempt to the extent of expenditure incurred for official purposes Dail .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... exempt Transport Allowance is granted to an employee to meet expenditure on commuting between place of residence and place of duty Up to 1,600 per month (3,200 per month for blind and handicapped employees) is exempt Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa Up to 200 per month Compensatory .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) Amount exempt from tax varies from 200 per month to 1,300 per month. for more information refer rule 2BB , Income-tax Rules, 1962 Any special allowance in the nature of counter-insurgency allowance granted to the members of armed forces operating in areas away from their permanent locations( Any asse .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e lower of following: a) 70% of such allowance; or b) 10,000 per month. NOTE:- Difference between Perquisites and Allowance - While the money received by an employee for any objective is known as allowance, perquisites are several facilities offered by employers. Above exemptions shall not be available to employee who opts to be taxed u/s 115BAC , except in respect of following allowances: [ Notif .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ect of free food and non alcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee who has exercised option u/s 115BAC . Under this section, allowance should not be in the nature of perquisite. Allowance should not be of personal nature. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management Ind .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X