INCOME FROM SALARIES

z
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Fully taxable allowances

 Dearness allowances  Dog allowances

 (CCA) city compensatory allowances  Capital compensatory allowances

 Medical allowances  Marriage allowance

 Lunch/tiffen allowances  Water and electricity allowances

 Overtime allowances  Entertainment allowance for non govt employee

 Servant allowances  Uniform allowance

 Warden allowances

 Family allowances

 Deputation allowances

 Project allowances
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Fully exempted allowances

 Allowances to govt employees, rendering services outside india

 House rent allowances granted judges of high and supreme
court.
 Sumptuary allowances granted judges of high and supreme
court.
 Allowances received by UNO from his employer.
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Partially taxable allowances:
A. PARTLY TAXABLE ALLOWANCES:
1) House rent allowance 10 (13A), Rule 2A
 
Least of the following is exempt from
tax:
a) HRA actually received
b) [Rent paid – 10% of salary]
c) 40% of salary (50% in case of New
Delhi, Mumbai, Kolkata and
Chennai);
Note: Salary means Basic, DA
(forming part) and % of
commission of turnover.
 Partially taxable allowances:
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2) Exempted up to the amount actually spent for

official purpose: Section 10(14), Rule 2BB

Actual amount received

Travelling/Transfer allowance; Xxx
( - ) Amount spent for official purpose
Conveyance allowance; Xxx
Taxable value
Daily allowance; Xxx
Helper allowance Note:
Uniform/Washing allowance; and If nothing is given, actual
expenses spent for official
Academic research allowance. purposes only
z Partially taxable allowances:
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