| SL. No. | SECTION | PARTICULARS | |
EXEMPTION AVAILABLE TO |
|---|
| 1. | 10(7) | Any allowance or perquisite paid or allowed by Government to its employees posted outside India | Entire Amount | Individual- Salaried Employee (being a citizen of India) |
| 2. | - | Allowances to Judges of High Court/Supreme Court | Exempt, subject to certain conditions. | Individual – Judges of High Court/Supreme Court |
|
| 3. | - | Compensatory allowance received by a Judge under article 222(2) of the Constitution | |
|
| 4. | - | Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions). | |
|
| 5. | 10(45) | Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax: a) Value of rent free official residence b) Value of conveyance facilities including transport allowance c) Sumptuary allowance
d) Leave travel concession | |
|
| 6. | 10(45) | Allowances to Retired Chairman/Members of UPSC |
| Exempt subject to maximum of Rs. 14,000 per month for defraying the services of an orderly and for meeting expenses incurred towards secretarial assistant on contract basis. |
|
| 7. | - | Allowances paid by the UNO to its employees |
| Fully Exempt Individual – Government employee |
| Individual – Employees of UNO |
|
| 8. | 16 (ii) | Entertainment Allowance received by the Government employees (Fully taxable in case of other employees) |
| Least of the following is exempt from tax: a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefits or other perquisite) c) Actual entertainment allowance received |
| Individual – Government Employee |
|
| 9. | | House Rent Allowance (Sec. 10(13A) & Rule 2A) |
| Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary * Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10th October, 2013]. |
| Individual – Salaried employee |
|
| 10. | 10(14) | Children Education Allowance |
| Up to Rs. 100 per month per child up to a maximum of 2 children is exempt |
| Individual – Salaried employee |
|
| 11. | 10(14) | Hostel Expenditure Allowance |
| Up to Rs. 300 per month per child up to a maximum of 2 children is exempt |
| Individual – Salaried employee |
|
| 12. | | Transport Allowance is granted to an employee to meet expenditure on commuting between place of residence and place of duty |
| Up to Rs. 1,600 per month (Rs. 3,200 per month for blind, deaf, dumb and handicapped employees) is exempt |
| Individual – Salaried employee |
|
| 13. | | Allowance granted to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance. |
| Amount of exemption shall be lower of following: a) 70% of such allowance; or b) Rs. 10,000 per month. |
| Individual – Salaried employee |
|
| 14. | 10(14) | Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office |
| Exempt to the extent of expenditure incurred for official purposes |
| Individual – Salaried employee |
|
| 15. | 10(14) | Any Allowance to meet the cost of travel on tour or on transfer |
| Exempt to the extent of expenditure incurred for official purposes |
| Individual – Salaried employee |
|
| 16. | 10(14) | Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty |
| Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
|
| 17. | 10(14) | Helper/Assistant Allowance |
| Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
|
| 18. | | Research Allowance granted for encouraging the academic research and other professional pursuits |
| Exempt to the extent of expenditure incurred for official purposes | Individual – Salaried employee |
|
| 19. | | | Exempt to the extent of expenditure incurred for official purposes |
| Individual – Salaried employee |
|
| 20. | | Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) |
| Amount exempt from tax varies from Rs. 300 per month to Rs. 7,000 per month. |
| Individual – Salaried employee |
| 21. | Sec. 10(14) read with Rule 2BB |
| Border area allowance Remote Locality or allowance or Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations) |
| Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month. |
| Individual – Salaried employee |
| 22. | | Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa |
| | Individual – Salaried employee |
|
| 23. | Sec. 10(14) | Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) |
| Up to Rs. 2,600 per month |
| Individual – Salaried employee |
| 24. | Sec. 10(14) | Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) |
| Up to Rs. 1,000 per month |
| Individual – Salaried employee |
|
| 25. | | Counter Insurgency Allowance if this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) |
| Up to Rs. 3,900 per month |
| Individual – Members of Armed Forces |
|
| 26. | | Underground Allowance is granted to employees working in uncongenial, unnatural climate in underground mines |
| | Individual – Salaried employee |
|
| 27. | | |
