Taxability of allowance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2015 Dear expert
plz solve my Query.

one of the employee basic salary is ie. 28000, Phone allowance ie. 1500, conveyance allowance ie. 2000, his daily allowance is rs 3000 PM.

MY Query is. as per section 10(14) daily allowance and phone are fully exempt or not.and should i take the acknowledgement for the same incurred by employee..

plz solve my Query...

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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05 September 2015 “Transport allowance” where a fixed exemption uptoRs 800 per month is given to such allowances in case of all employees. However, with introduction of finance act 2015 such exemption is increase to Rs. 1600 per month with prospective effect.

Any allowance whether granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

Phone allowance and Daily allowance not eligible if it is the part of salary. conveyance allowance Rs.1600 P.M is from 2015 April exempt