ALLOWANCE
An allowance refers to a fixed amount of money provided by employers to their employees beyond their basic salary. Allowances are classified as taxable, partially taxable, or non-taxable, with each having its own income tax implications.
Taxable Allowances
- Dearness Allowance
- Entertainment Allowance
- Overtime Allowance
- City Compensatory Allowance
- Medical Allowance
- Interim Allowance
- Project Allowance
- Tiffin/Meals Allowance
- Uniform Allowance
- Cash Allowance
- Non-Practicing Allowance
- Warden Allowance
- Servant Allowance
Partially Taxable Allowances
- House Rent Allowance (HRA)
- Leave Travel Allowance (LTA)
- Children Education Allowance
- Hostel Expenditure Allowance
- Fixed Medical Allowance
- Conveyance Allowance
Non-Taxable Allowances
- Conveyance Allowance
- Payments to Government Employees Posted Abroad
- Books and Periodicals Allowance
- Gadgets
- Gifts in Kind
- Recreational and Medical Facilities
- Allowance for UN Employees
- Sumptuary Allowance
- Compensatory Allowance