News Topics

What are allowances? Are all allowances taxable?

What are allowances? Are all allowances taxable?

What are allowances? Are all allowances taxable?

0
Jeeba Aug. 17, 2018

Allowances are the benefits provided by the employer to his employees in addition to the salary.

In a view of the taxation purpose, allowances are of three types:

  • Fully taxable allowance
  • Fully exempted allowance 
  • Partly taxable allowance 


Therefore all the allowances do not come under the changeability to tax.