Amit jha (Sr. Officer (Finance & Accounts)) (309 Points)
18 October 2011
Phalgun
(Audit Manager)
(327 Points)
Replied 18 October 2011
As per section 10(14) of the income tax act 1961, following are the allowances allowed on the Least of actual receipt or actual incurred basis :
a)Helper Allowance b)Research & Academic allowance c)Travelling allowance d)Conveyance allowance e)Uniform allowance f)Daily allowance
Basis : No fixed amount as limit is defined for the above allowances as exempt. It is exempt as least of actual expenses received or actual expenses incurred .
so here if your employee 's actual expenses is less than allowance received i.e 800 then actual expenses is taken for exemption,otherwise the actual received.
Vehicle Maintenance allowance is not exempt.
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