It refers to any extra payment an employer gives to an employee besides their salary, which is taxable under the Income Tax Act. This helps the employees manage their specific needs, but they are also taxed.
Aspects of taxable allowance
- Project Allowance
- Uniform allowance
- Warden allowance
- Servant allowance
- Dearness Allowance
- Entertainment Allowance
- Overtime allowance
- City compensatory allowance
- Interim Allowance
- Meal allowance
