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Daveli Venkannababu   13 July 2023

Nature of exempt allowances

Dear sir /madam Allowance to meet expenditure incurred ??Any salaried assessee can claim below mentioned allowance please can one clarify sections its importance . if employer not given salary break -up or salary structure (employer pay consolidated pay to employee then employeee split his /her salary break up while filling income tax returns 1.)Sec 10(14)(i)- Prescribed Allowances or benefits (not in a nature of perquisite)specifically granted to meet expenses wholly, necessarily and exclusively and tothe extent actually incurred, in performance of duties of office or employment 2)Sec 10(14)(ii) -Prescribed Allowances or benefits granted to meet personal expenses in performance of duties of office or employment or to compensate him for increased cost of living. 3)Sec 10(13A)-Allowance to meet expenditure incurred on house rent

If an assesse can claim exemption above mentioned sections



Quick Summary
This discussion clarifies exempt allowances available to salaried individuals in India for income tax purposes. It highlights Section 10(14)(i) for allowances to meet work-related expenses, Section 10(14)(ii) for personal expenses or cost of living compensation, and Section 10(13A) for house rent allowance. Employees can claim these even if their employer doesn't provide a salary breakdown, by splitting their consolidated pay during tax filing.

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     14 July 2023

You can consult your auditor or a chartered accountant for more clarity on the topic you have raised here.

 

P. Venu (Advocate)     26 July 2023

The posting suggests no legal issues.


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