![]() ![]() ![]() The amount that comes under LTA is completely tax-free. Leave Travel Allowance (LTA): This is the amount that your employer pays for your domestic traveling. You can claim a tax exemption of up to Rs. So, if you pay rent then it’s a great way to save on some taxes.Ĭonveyance or Transport Allowance: The employer also pays a transport allowance for your commute between work and home. It is partially or completely exempted from taxes. Therefore, HRA is provided to all employees to meet their accommodation expenses. Employees who live in rented apartments or houses. House Rent Allowance (HRA): Allowances related to the expenses of rented accommodation. Overtime Allowance: It is the amount paid for the extra time you worked for the company during national holidays etc. Its amount may vary from company to company but up to Rs, 15,000 per year is exempted from tax provided you furnish proof of expenses. The amount is usually the reimbursed expense and you would need to provide sufficient proof of expenses such as medical bills and doctors’ prescriptions. Medical Allowance or Reimbursement: This is the allowance that the employer pays for any of your medical expenses during the period of employment. This amount is calculated as a percentage of basic salary to mitigate the effect of inflation. Given below are the details of each allowance:ĭearness Allowance: This is the separate allowance paid to employees. ![]() Allowances could be fully taxable, partially taxable, and even non-taxable.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |