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What are non taxable allowances as per income tax act of India,1961.? |
What are non taxable allowances as per income tax act of India,1961.? If u mean the allowances to a salaried person from his employer, then there is none which is altogether non-taxable. But there r some allowances which r exempt upto a certain LIMIT: Children Education Allowance: Exempt upto Rs100 per child per month for a maximum of 2 children. Amt. recieved in excess of this is taxable Hostel Expenditure Allownce: Exempt upto Rs.300 per month per child for a maximum of 2 children. Transport allowance: Exempt upto Rs800 per month. Tribal Area Allownce: Rs200 per month The following allowances are exempt upto the amount spent on OFFICIAL PURPOSES : 1. Travelling Allownace 2. Helper Allowance. 3. Uniform Allownace. 4. Conveyance Allownce. 5. Daily Allownce 6. Academic Allownace. All other allowances are FULLY TAXABLE. However, if a Central Govt. employee is posted outside India then all allowances are non-taxable for him. Source(s): I m a tax student.. Write back for more info. Transport Allowance (Up to Rs. 800/- pm),Hill area allowance, Dail allowance on tour, please refer section 10 of the I T Act 1961. www.aaykarbhavan.com |
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