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Saturday, 15 April 2017

Allowances Which are Exempt upto a Extent Limit




  1. Children Education Allowance :  ₹. 100 per month per Child (Max Of 2 Child) in a financial year is exempt from tax & rest of the amount is fully taxable.
  2. Children Hostel Allowance :  ₹. 300 per month per Child (Max Of 2 Child) in a financial year is exempt from tax & rest of the amount is fully taxable.
  3. Transport Allowance :  ₹. 1600 per month for normal person  or 3200 per month for Orthopedically Handicapped person, in a financial year is exempt from tax & rest of the amount is fully taxable.
  4. Siachen Allowance : ₹. 7000 per month
  5. Compensatory Allowance(CFAA) : ₹. 2600 per month 
  6. Compensatory Modified Field Area Allowance(CMFAA) : ₹. 1000 per month
  7. Special Compensatory Allowance : ₹. 200 per month, for specified places, such as Tribal areas, schedule areas, agency areas
  8. House Rent Allowance : As per section 10(13A)
  9. Entertainment Allowance : a. 1/5 of Salary, b.  ₹. 5000 per annum,  or c. Actual Paid, whichever is lower is exempt from tax, only for government employee. 
  10. Any Special Allowance in the nature of Counter-Insurgency Allowance : ₹. 3900 per month 
  11. Hard Area Allowance : ₹.1300 per month.


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