Tax free or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2015 Hi,

I have two queries

1. If i give certain clothes to my employees to wear for office then is this expense tax free

2. If i spend certain amount for cleaning of their clothes then is this amount tax free.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 June 2015 Both the expense are tax free in the hands of employees and you can claim it as expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2015 Many thanks for such a quick reply.

CA. Ankit Chandrakar

CA. Ankit Chandrakar (Expert)
Follow

15 June 2015 Exempt as Uniform Allowance under section 10(14).

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2015 There is a limitation on the travel allowance

Similarly is there any limitation on the uniform maintainance allowance

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

26 July 2025 Great question! Here’s the deal on uniform and uniform maintenance allowances under Indian tax laws:

---

### 1. **Uniform Provided to Employees**

* If you **provide clothes/uniforms to employees** that they are required to wear for work, **this expense is generally exempt from tax** in the hands of the employee.
* It’s considered a **tax-free perquisite** (like uniform allowance) under **Section 10(14)** of the Income Tax Act, provided the clothes are mainly for official use.

---

### 2. **Uniform Maintenance / Cleaning Allowance**

* The **amount paid or reimbursed for cleaning or maintenance of uniforms** is also **exempt from tax**, if it is paid **specifically for that purpose**.
* This is treated similarly under the allowance/exemption provisions.

---

### 3. **Limitations on Uniform or Maintenance Allowance**

* Unlike travel allowance (which has specified limits under Section 10(14)), **there is no explicit monetary ceiling prescribed under the Income Tax Act for uniform or uniform maintenance allowances.**
* However, the allowance should be **reasonable** and related to official use to be exempt.
* Excess amounts or allowances paid without connection to official requirements may be treated as taxable perquisites.

---

### Summary:

| Allowance Type | Taxability | Limit/Condition |
| ----------------------- | ----------------------- | ------------------------------------------------- |
| Uniform provided | Tax exempt | Should be for official use |
| Uniform maintenance fee | Tax exempt | Must be specifically for cleaning/maintenance |
| Limit on allowance | No fixed monetary limit | Allowance must be reasonable and for official use |

---

If you want, I can help draft a policy or format for uniform allowance or maintenance reimbursement that aligns well with tax laws! Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now