Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Allowance taxable or exempt

336 views

Save Share

Join Us Follow Us Add as Source

lokesh SHARMA

127 Points Posted on 23 October 2021

hardship allowance is taxable or not. my client receive hardship allowance he works BSF in central government

Replies (4)

Quick Summary

This discussion clarifies whether hardship allowances are taxable. Generally, any allowance not specifically exempted is considered taxable. However, exemptions may apply based on posting location and specific conditions, as outlined in Rule 2BB(2) and Section 10(14) of the Income Tax Rules. It's suggested that hardship allowances might not be taxable in certain circumstances.

Sivaramaraju G

Learner

2398 Points Posted on 23 October 2021

Any allowance which is not specifically exempted is treated as taxable allowance.

Kev Men

790 Points Posted on 23 October 2021

Kindly refer Rule 2BB (2) of the Income Tax Rules along with Section 14 of the Income Tax Act. It will give you an idea about the various exemptions applicable depending on the area of posting, conditions, etc.