You are here
The following 6 allowances are fully exempt for all employees
- Uniform Allowance
- Academic and Research Allowance
- Travelling Allowances
- Helper Allowances
- Daily Allowance
- Conveyance Allowance
However, there is only one condition that if amount is received but not spent, then the unspent amount will be taxable.
Practical Implication
Note:-While maintaining payroll, bills to be collected from employees for these. If Bills are not available, then written declarations are taken from employees. For those employees who do not submit the bills or declaration, these allowances become taxable, otherwise they are exempt
