TaxTMI 
TaxTMI 
Special Allowances - [Section 10(14)]
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....mption 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....
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....children is 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 mon....
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.... Locality or allowance or 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 p....
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....llowance. Amount of exemption shall be 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, e....