The following 6 allowances are fully exempt for all employees

  • Uniform Allowance
  • Academic and Research Allowance
  • Travelling Allowances
  • Helper Allowances
  • Daily Allowance
  • Conveyance Allowance

However, there is only one condition that if amount is received but not spent, then the unspent amount will be taxable.

Practical Implication

Note:-While maintaining payroll, bills to be collected from employees for these. If Bills are not available, then written declarations are taken from employees. For those employees who do not submit the bills or declaration, these allowances become taxable, otherwise they are exempt



  1. Income Tax
  2. Income from Salaries

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.