Allowances
Allowances are financial benefits provided by employers to
their employees to cover specific expenses, such as house rent,
travel, or medical expenses. These allowances can either be
fully taxable, partially exempt, or fully exempt under the
Income Tax Act, 1961."
Common examples of allowances:
• HRA (House Rent Allowance): Partially exempt under Section 10(13A).
• Travel Allowance (TA): Exempt up to certain limits for official duties.
• Medical Allowance: Taxable unless reimbursed for actual expenses.
• Lunch, cleaning etc.
Can be greater than, equal to or less than the expanse.
Calculation
For concessional Rate of
Interest
Loan Type
Existing
ROI
Benchmark Rate
as on 01/04/2024
Rate for
perquisite
valuation%
Total
Perquisite
Value
Tax on
Perquisit
e 30% of
Perks
Tax on
Perquisite
20% of
Perks
Housing Loan 6.00 9.15 3.15 218478.75 65543.63 43695.75
Per Month 5461.97 3641.31
or Interest free Loan
Loan
Type Existing ROI
Benchmark
Rate as on
01/04/2024
Rate for
perquisite
valuation%
Total
Perquisite
Value
Tax on
Perquisit
e 30% of
Perks
Tax on
Perquisit
e 20% of
Perks
Festival
Advance 0.00 11.15 11.15 5110.42 1533.13 1022.083
Amount
Availed
Instalment
Paid on 10th
of every
month
Balance on
last day of
month
Rate of
perquisite =
11.15
100000 0 100000 929.17
100000 10000 90000 836.25
90000 10000 80000 743.33
80000 10000 70000 650.42
70000 10000 60000 557.50
60000 10000 50000 464.58
50000 10000 40000 371.67
40000 10000 30000 278.75
30000 10000 20000 185.83
20000 10000 10000 92.92
10000 10000 0 0.00
Total 5110.42
Comments
Post a Comment