special allowance

This query is : Resolved

Naresh Kansala (Querist)
Follow

22 August 2007 hello

most of employers pay their employee & in employees form 16 they write allowance given to him as "Special Allowance" instead of witting which special allowance is give unifom allowance or any other such allowance.& some time they mention other special allowances given to them by their name.
eg.
Basice Pay 60000
hra 20000
uniform allowance 5000
CA 10000
special Allowance 20000 is allowance given to this person that is mentioned as Special Allowance is empted

my Query is that is that "special Allowance is exempted under section 10

Raj

Raj (Expert)
Follow

22 August 2007 No it is not exempt , Now a days it become a trend in corporates that all the taxable salary which is not finding to any specific allowance head , quoted as Special allowances/other allowances etc.