Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

query

tanuja........... (pcc student) (571 Points)

28 November 2010

hi...

is there any deductions for special allowance received by an individual for tax planning

Reply
Follow
Share

9 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 28 November 2010

Yes. Refer section 10(14) of Income Tax Act, 1961 and rule 2BB of Income Tax Rules. May be you can find something.

Regards,

Devendra Kulkarni

Upgrade to CAclubindia Pro. Subscribe Now!

Krishan (Service) (633 Points)
Replied 28 November 2010

No... whole special allowance received is taxable....

Sunshine (Helping All) (10575 Points)
Replied 28 November 2010

yes u/s 10(14) special allowances such as conveyance,helper,uniform,transfer,research allowance are exempt upto the amount actually spent .......
As per rule 2BB ,
1.children education allowance exempt upto 100 per month per child (max. 2 children)
2.children hostel allowance exempt upto 300 per month per child..(max. 2 children)
3.transpoort allwance exempt upto 800 per month ( 1600 per month in case of diabled person)
4.for transport employees exempt upto 6000 per month or 70% of the allowance whichever is lower...

regards,

Nirav (Accountant) (595 Points)
Replied 28 November 2010

allowances can never be claimed as a deduction...they are either taxable or exempted....and special allowances are always taxable.

CA Mudit Agarwal PGDFM,MCP,IFR (Dy. Manager (Taxation)) (289 Points)
Replied 28 November 2010

(i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred¹ in the performance of the duties of an office or employment of profit², ³[as may be prescribed], to the extent to which such expenses are actually incurred for that purpose ;

(ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit² are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, ⁴[as may be prescribed and to the extent as may be prescribed] :]

Upgrade to CAclubindia Pro. Subscribe Now!

CA Nikhilesh Singla (CA) (83 Points)
Replied 29 November 2010

There is no deduction available for special allownce..

only specified alllowances are eligible for deduction like - travelling allowance, children education allowance...

CA J.Alamelu lakshmi (Chartered Accountant) (852 Points)
Replied 29 November 2010

Originally posted by : Sneha..sunshine..
	yes u/s 10(14) special allowances such as conveyance,helper,uniform,transfer,research allowance are exempt upto the amount actually spent ....... As per rule 2BB , 1.children education allowance exempt upto 100 per month per child (max. 2 children) 2.children hostel allowance exempt upto 300 per month per child..(max. 2 children) 3.transpoort allwance exempt upto 800 per month ( 1600 per month in case of diabled person) 4.for transport employees exempt upto 6000 per month or 70% of the allowance whichever is lower... regards,

(Guest)

Originally posted by : Sneha..sunshine..
	yes u/s 10(14) special allowances such as conveyance,helper,uniform,transfer,research allowance are exempt upto the amount actually spent ....... As per rule 2BB , 1.children education allowance exempt upto 100 per month per child (max. 2 children) 2.children hostel allowance exempt upto 300 per month per child..(max. 2 children) 3.transpoort allwance exempt upto 800 per month ( 1600 per month in case of diabled person) 4.for transport employees exempt upto 6000 per month or 70% of the allowance whichever is lower... regards,