Tax Glossary Definition
These are payments made by employers to cover expenses that employees incur while carrying out official duties—such as travel, conveyance, or uniform allowances. The amount of exemption available depends on either the actual expenses incurred or the limits prescribed under income tax rules.
Example: If an employee receives a travel allowance of ₹20,000 and spends ₹18,000 on official travel, only ₹18,000 will be exempt from tax.
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