Salaries

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Ashish Thengare

Ashish Thengare (Querist)
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05 June 2016 which Income exepmted in salaried employees?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 June 2016 Under salary income various exemptions in Allowances, perquisites are there. example. Transport allowance. children education allowance, medical reimbursement etc. please refer the complete salary income chapter in Income tax

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Ashish Thengare

Ashish Thengare (Querist)
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07 June 2016 what is mean by vda income

Ashish Thengare

Ashish Thengare (Querist)
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07 June 2016 what is mean by vda income

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 July 2025 “VDA Income” usually refers to Variable Dearness Allowance (VDA) — a component of salary paid to employees, especially in industries or government jobs, to offset the impact of inflation on living costs.

What is VDA Income?
It’s part of the salary structure.

It varies based on inflation or cost of living adjustments.

VDA is fully taxable under the Income Tax Act as part of salary income.

Unlike some allowances (like transport allowance or children education allowance), VDA does not enjoy any exemption.

So in summary:
VDA is a variable allowance added to the basic pay.

It’s taxable like basic salary.

No special exemption on VDA income unless specifically notified.

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