The least of the following is exempt from tax:
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- The actual amount of house rent allowance received
during the period in which he is residing in the rented house.
- Excess of rent paid over 10 per cent of salary.
- An amount equal to 50 per cent or 40 per cent of
salary based on the location of the accommodation.
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12.Special allowances- Sec.10(14)
Certain special allowances granted to meet expenses incurred in the performance of duties
are exempted from tax. A variety of allowances has been specified which includes among
others:
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- Uniform allowance.
- Conveyance allowance
- Transport allowance up to a limit of Rs 800 per
month
- Children's education allowance of Rs 50 per month a
child for 2 children
- Hostel allowance of Rs 150 per month per child for 2
children
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| f. |
