Hi,
one of my friends is posted in the state police department and doing his tax computation for A.Y. 2023-24
the components of his salary is as follows
Basic/Da/HRA/Compensatory pay/Medical Allowance/Conveyance allowance/Mobile allowance
My question is
1. medical and conveyance allowance will be covered in standard deduction?
2. Compensatory pay is fully taxable?
3. Mobile allowance taxability?
plz help
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Deduction and exemption for police personnel
Replies (2)
1. Medical allowance and conveyance allowance are not covered under the standard deduction.
2. Compensatory pay is fully taxable. It is treated as a part of the employee's salary and is subject to income tax as per the applicable tax slab.
3. Mobile allowance taxability depends on whether the mobile phone is provided by the employer or the employee. If the mobile phone is provided by the employer and the SIM card is in the name of the company, then the mobile allowance is exempt from tax. However, if the SIM card is in the name of the employee and the employer is reimbursing the mobile expenses, then it will be taxable as a perquisite. If the mobile phone is provided by the employee, then the mobile allowance is not applicable and cannot be claimed as an exemption.
1. Medical and Transport Allowance has been subsumed in Standard Deduction. Conveyance Allowance (expenditure on conveyance in performance of office duty) is exempt to the extent of actual expenditure incurred.
For rest two, agreed with above.
For rest two, agreed with above.
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