Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Tax

11,844.10187.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

5 allowances that are taxable for employees

City Compensation Allowance (CCA) is offered to the employees to meet the living expenses in areas like the metros and big cities.

ET CONTRIBUTORS|
Mar 04, 2019, 06.30 AM IST
0Comments
Getty Images
tax2-getty
Any cash allowance given to employees for holidays, marriage or bereavement etc. is fully taxable.
1. Dearness Allowance (DA) is provided for the adjustments of infl ationary effect on the cost of living to public sector employees.

2. City Compensation Allowance (CCA) is offered to the employees to meet the living expenses in areas like the metros and big cities.

3. Entertainment Allowance is offered to the employees for the expenses incurred on the hospitality of customers is taxable for nongovernment employees.

4. Any cash allowance given to employees for holidays, marriage or bereavement etc. is fully taxable.

5. Project Allowance for project related expenses, meals allowance for food expenses and overtime allowance for working extra hours are also taxable.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
0Comments
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service