Please let me know the following with regards to uniform and qualification allownace which are tax free.
- Does an employee need to submit any bills/documents for claiming the allowance? - Are the above allowance applicable to any industry or only specific industry?
we are from engineering industry and have majority employees who are engineers. Does this allowance apply to them as well.
17 January 2011
As far as Uniform allowance allowance is concerned -it is meant for spending on uniform by the employee. Bills /Documents are necessary to substantiate the actual amount spent for the purpose. In your Industry it can be applicable.
Qualification allowance as such has not been elaborated in the ACt and as such it can be treated as part of taxable salary.
In spite of providing this allowance to employees, if company itself incurs expenditure for educating the employees, it may avail deduction as a normal business expenditure.