Types of Allowances

Last updated at April 16, 2024 by

Allowance is a fixed/flat amount given to the employee

Some of the allowance are fully exempt. However some are exempt up to some limits. However all other remaining are fully taxable.

Types of Allowances

  1. Fully Exempt Allowances for All
  2. Fully Exempt Allowances for Certain People
  3. Allowance Exempt upto Some Limit
  4. Taxable Allowances    

We have to remember the first 3 kinds of allowances.

All other alllowance except the above 3 are fully taxable allowances

  Lets study these in detail

Go Ad-free
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.