Allowances
Description- payments in cash made by the employer to his employees monthly, other than salary, is called an allowances. It is it fixed sum of money paid regularly in addition to salary for the purpose of meeting some particular requirement connected with the services rendered by an employee.
From the income tax point of view there are three types of such allowances which are as under:
1-Taxable Allowances,
2-Allowances Exempt upto Specified limit,
3-Fully Exempted Allowances.
