Q. I have got encashment of my leave from my employer. Will it be included in my salary?

Ans. Yes, any amount of encashment for the period of leave not availed by an employee during his/her employment shall be included in the income from salary. However, leave encashment after retirement is exempt subject to certain conditions.

Q. I am receiving House Rent Allowance from employer. I am staying with my parents and paying no rent. Shall I get any exemption for House Rent Allowance against my salary income?

Ans. No, if you are not paying any rent then the amount of House Rent Allowance shall be fully added to your salary income.

Q. I am receiving Rs.2000/= per month as conveyance allowance. Is it exempted from income?

Ans. No, conveyance allowance is exempted up to Rs.1600/= per month. In your case, Rs.400/= per month will be added to your salary income.

Q. Is the allowances received relating to encouraging academic research and other professional pursuits or for the books for this purpose is taxable?

Ans. No, any allowance received for encouraging academic research and other professional knowledge or the books and periodicals for this purpose are fully exempt from income.

Q. I am getting Rs.10000/= per annum as Medical Allowance. Is it taxable?

Ans. Yes, any medical allowance received is taxable but if any reimbursement of your medical bill is made by your employer then it is not taxable. Remember that the maximum amount of reimbursement of medical bills during a year should not be more than Rs.15000/=.

Q. I am having two sons who are studying in school and staying in hostel. I am getting Rs.500/= per month per child as children education allowance and Rs.500/= per month per child to meet the hostel expenses. It is taxable?

Ans. Children education allowance and allowance to meet hostel expenditure, are exempt up to Rs.100/= per month and Rs.300/= per month respectively per child for a maximum of two children. In your case the extra amount received by you, shall be included in your income.

Q. My employer provides me free meal in office. Will it be added to my income or taxable?

Ans. Please note that expenditure on following shall not be included in your income as perquisite:-

  • Free meals of value up to Rs.50 per meal provided by the employer in office hours and in office premises.
  • Tea or snacks provided during office hours.
  • Free meal provided through non-transferable paid voucher up to Rs.50/= per meal.
  • Free meal provided during office hours provided in remote area.

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