Deductions/Allowances allowed to a salaried employee as per the Income Tax Act ‘Salary’ is the first head of income. The incometaxable under head shall be calculated on the due basis or the receipt basis, whichever occurs earlier. Taxable salary shall include taxable allowances, perquisites, retirement benefits, and profit in lieu of salary. Certain deductions are also allowed from salary income. TaxabilityofAllowances Allowances are additional components of salary that are regularly given to employees to meet the expenditure for particular purposes. Allowances are generally fixed irrespective of actual expenditure and are…
Friday, November 14, 2025
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