Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Confusion on Tax Exception on Allowances for Employees (URGENT)

A Murthy (Article Student) (10 Points)

02 July 2023

Hello,

I need to file one of my contact ITR returns, In his Payslip there some allowances mentioned for which i am not sure they are exempted or not, Can be claimed under 10(14)(ii) Allowances to meet personal expenses in performance of duties of office or to compensate him for increased cost of living.

Below are the allowances which are like components of salary like fixed.

1. Canteen Subsidy

2. Office Maintenance allowances

3. Furniture allowances

4. Transportation allowance

Please help which all i can take as exempted to save more tax. All these allowances are considered as taxable in form 16.

Reply
Follow
Share

3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 03 July 2023

Get his form 16 from employer and follow it.

A Murthy (Article Student) (10 Points)
Replied 05 July 2023

I already have form 16 i want clarity on these allowances. Office Maintenance allowance. I think these can be claimed in Section 10(14)(ii) as they do not have any office they keep their home as office and expenses related and their HRA component is also very small.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160886 Points)
Replied 05 July 2023

You can claim the expenses if the form 16 has specifically allowed it, otherwise there would be query from ITD, which you will not be able to justify in any other manner.