Salary - Exempted allowances

Salary - Exempted allowances:

Children Education Allowance and Tax Exemption - Children's Education Allowance is exempt up to a maximum of Rs 100 per month per child. For the purpose of exemption a maximum of two children can be taken into consideration.

Hostel Expenditure Allowance Exempted from Tax For Employees Child - Expenditure on the above mentioned is exempt to the extent of Rs.300 per month per child up to a maximum two children. Not a very large amount though to meet hostel expenses.

Any allowance that is granted for travel or company tour is also exempted from tax, if the employee us using them.

If no free conveyance is provided then the allowance that is granted for the purpose of travel to fulfill one's travel duties is exempt from tax.

If an employee conducts academic research then the allowance for the purpose of research and training at educational or research institution is exempt from tax.

If you have been granted an allowance to meet the expenditure that you have incurred for the purchase/ maintenance of uniform that you need for duty, such an allowance is exempt from tax.

Hilly areas such as the North East, Hilly areas of Uttar Pradesh or Himachal Pradesh you can claim a sum of Rs 800 as exemption per month.

Siachen area of Jammu and Kashmir, then a sum of Rs 7000 per month can be claimed as exemption. (not a exhaustive list )