Special allowance in salary slip

Many times we come across allowances such as transport, conveyance, uniform allowance, etc.

These are special allowances that an employer offers to its employees regularly. These allowances have specific requirements and conditions for taxability.

Special allowance examples

In this article we have covered its type, their taxability, and conditions for claiming exemptions.

What is an Allowance?

It is a fixed amount of money that an employer offers to its employees. The employers pay it over and above the basic pay and dearness allowance.

The objective is to meet the specific requirements of the employees. These allowances are a part of the salary and hence taxable.

Special allowance percentage in salary

However depending on the type of allowance, it is either exempt or taxable. 

What is Special Allowance in Salary?

The special allowance is offered to the employees to enable them in meeting their expenses. They incur these expenses while performing their duties of an office or employment of profit.

The amount varies from one company to anothe

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