Detailed List:- Allowances exempt under Section 10

There are numerous allowances exempt under Section 10 for Salaried Employees like House Rent Allowance, Leave Travel Allowance, Travelling Allowance, Uniform Allowance etc.

We’ve already discussed the next allowances within our previous posts as well as in this publish we’d be focussing on certain special allowances that are covered under Section 10 (14).

Special Allowances exempt under Section 10 (14)

The special allowances exempt under Section 10 (14) could be split into 2 parts:-

  • Allowances exempt under Section 10 (14)(i)
  • Allowances exempt under Section 10 (14)(ii)

The entire taxed salary could be computed after lowering the allowances exempt under Section 10 and also the balance salary could be taxed as reported by the Tax Slabs. TDS on Salary would be also deducted and also the worker can claim credit of the identical during the time of filing of tax return.

The above mentioned 2 groups of allowances exempt under Section 10 happen to be described below:-

Allowances exempt under Section 10 (14)(i)

This group of allowances are exempt under Section 10 14 ii towards the extent of the particular amount received or even the amount spent for that performance from the responsibilities of the office (whichever is less).

The next allowances are covered under this category:-

Travelling Allowance: Any allowance granted to satisfy the price of travel on tour or on change in duty. “Allowances granted to satisfy the price of travel on transfer” includes any sum compensated regarding the transfer, packaging and transportation of private results of such transfer.

Daily Allowance: Any allowance, whether granted on tour or the time of journey regarding the transfer, to satisfy the standard daily charges suffered by an worker due to absence from his normal host to duty.

Conveyance Allowance: Any allowance granted to satisfy the expenditure incurred on conveyance in performance of responsibilities of the office or employment of profit, so long as free conveyance isn’t supplied by the business.

Assistant Allowance: Any allowance, by whatever name known as, granted to satisfy the expenditure incurred on the assistant where such assistant is engaged for that performance of responsibilities of the office or employment of profit.

Academic Allowance: Any allowance, by whatever name known as, granted for encouraging academic, research and training pursuits in educational and research institutions.

Uniform Allowance: Any allowance, by whatever name known as, granted to satisfy the expenditure incurred around the purchase or upkeep of uniform for put on throughout the performance of responsibilities of the office or employment of profit.

The quantity exempt for that above pointed out allowances will be least from the following:-

Amount really spent for that performance of duty

For eg: When the Travelling Allowance received monthly is Rs. 1200 and also the actual amount spend is Rs. 800, only Rs. 800 could be exempted i.e least of these two.

However, in situation within the above example, the Travelling allowance received was Rs. 1200 and actual amount spend was Rs. 1600, then only Rs. 1200 could be exempted i.e. least of these two.

Allowances exempt under Section 10 (14)(ii)

This group of allowances is exempt towards the extent from the amount received or even the limit specified (whichever is less)

The next allowances are covered under this category:-

Kind of Allowance Allowances exempt under Section 10

i Special Compensatory Allowance for Hilly Areas or Thin Air Allowance or Climate Allowance Rs. 800 common for various parts of North East, Hilly Regions of UP, HP, J&K and Rs. 7000 pm for Siachen section of J&K and Rs. 300 common for those places in a height of 1000 mtr or even more apart from above places.

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