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
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.