Important Allowances
S.NO | Allowance Name | Exempt up to |
1 | Children Education Allowance | Rs.100 p.m. per child up to a maximum of 2 children. |
2 | Hostel Expenditure Allowance | Rs.300 p.m. per child up to a maximum of 2 children. |
3 | Transport Allowance | 1600 p.m. Now it is fully taxable |
4 | HOUSE RENT ALLOWANCE (HRA) | Least of following 3 is exempt |
Actual HRA Recd. | ||
Rent paid-10%*(Basic +DA ) | ||
40%*(Basic + DA) (50% in Metro Cities) |
Other Allowances
S.No | Allowance Name | Exempt upto |
5 | Transport Allowance for Blind/Handicapped Employees | Rs.1600 p.m . (From 2015-16 FY 3200 p.m.) |
6 | Tribal Area , Scheduled Area / Agency Area Allowance | Rs.200 p.m. |
7 | Special Compensatory Hilly Area Allowance Or High Altitude Allowance | Varies from Rs.300 to Rs.7000 p.m. |
8 | Border Area Allowance | Varies from Rs.200 to Rs.1300 p.m. |
9 | Compensatory Field Area Allowance | Rs.2600 p.m. |
10 | Compensatory Modified Field Area Allowance | Rs.1000 p.m. |
11 | Counter Insurgency Allowance Granted To Members Of Armed Forces | Rs.3900 p.m. |
12 | Transport Employees Working In Any Transport System | 70% of the allowance , maximum Rs.10000 p.m. |
13 | Underground Allowance | Rs.800 p.m. |
14 | High Altitude (Uncongenial Climate) Allowance | Altitude of 900. ft. to 15000 ft. Rs. 1060 p.m. and altitude above 15000 ft. Rs.1600 p.m. |
15 | Special Compensatory Highly Active Field Area Allowance Granted To Members Of Armed Forces | Rs.4200 p.m. |
16 | Island (Duty) Allowance | Rs.3250 p.m. |