special allowances

how is special allowance is taxable??
Replies (1)

Special allowance is 100% taxable,  if there are no exemptions under the Income tax act for the same. It is restricted to the amount paid by the employer and the actual expenditure by the employee for the purpose. However, there are different exemption limits for different kinds of these exemptions, the excess of which is taxable. If need be, you could mention the specific kind of special allowance. If there's none, in which case it is just the leftover part of your salary it is 100% taxable.

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