Daily Allowance

Tax Glossary Definition

Daily Allowance

Daily Allowance – It is a fixed monetary amount provided to employees to cover their routine daily expenses, such as meals, local travel, and incidental costs, incurred while performing official duties away from their usual place of work. This allowance ensures that employees are not personally burdened with additional expenses during official travel or assignments.

Example: A government officer on an out-station assignment may receive a daily allowance of ₹500 per day to meet expenses for food and local conveyance during the trip.

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