Exemption of Special Allowance

This query is : Resolved

bhagwati saran (Querist)
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02 January 2010 Dear All,

Hi and Happy New Year to All,

I am getting Rs. 10000.00 p.m. as a Special Allowance towards cost to be incurred to meet the expenditure on office duty or Market sales works etc. I want know whether the said allowance is expempt up to the bills of petrol Cash Memos and Local Taxi Hire charges which i submit to the Company or Not.

Please advise.

Thanks
Saran

ANIL JANGID

ANIL JANGID (Expert)
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02 January 2010
RS..10000 SPECIAL ALLOWANCE IS TAXABLE
BETTER YOU TAKE ADVANCE THEN PUT THE EXPENSES BILL AGAINST THE ADVANCE AND GET RELEIF.UNLESS THE SAME WILL BE DEEMED YOUR INCOME.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 January 2010 Special allowance fully taxable

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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02 January 2010 yes, special allowance fully Taxable.

Bimal Thacker

Bimal Thacker (Expert)
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04 January 2010 If the above Rs.10000/- received as special allowance is as a part of salary then it is taxable. However it has been received like as travelling allowance then only the portion which has unspent should be taxable.
If as per rule of your company you received a per day allowqance for travelling outside the office and you claim as spent the all amount then it is not taxable. It will be taxable only if you say's that there has been some saving from such.