It is one of the important components where both employer and employee contribute 12% of the employee’s basic salary every month toward employees provident fund. The expenses as mentioned in the bill should be in relation to the consultation of doctor, medicines, medical tests etc. For claiming reimbursement, you need to submit bills to your employer. If your medical bills have not exceeded Rs.15000 in a particular financial year, then that particular reimbursement claimed by salaried employees are not taxable adhering to certain terms and conditions. Bonus, paid to the employee by any name, is fully taxable. It is usually paid on the occurrence of an event, semi-annually or annually.
There are various kinds of bonuses like annual bonus, semi-annual bonus, performance bonus, festive bonus, etc.
This allowance is used by the company to formulate the salary of an employee. This allowance can include any amount as it is taxable. Earlier it was Rs 800 per month.Īfter doing all the allocation of your salary into various components, you may see a component as ‘special allowance’ which is fully taxable. The limit was doubled in the budget 2015. It is given to employees to meet their daily routine expenses travelling from your home to work. The total amount of Rs1600 per month or Rs 19200 per annum can be claimed as tax exemption under this allowance. You do not have to provide any document of conveyance allowance from your employer. It should be declared while filing your income tax returns. The income tax act clearly specifies that tax liability for DA will be calculated along with salary. The allowance is paid to the employees to manage the inflation.
If you are not living in a rented house then your HRA is fully taxable.ĭearness Allowance (DA) is an allowance paid to employees as a cost of living adjustment allowance. Salaried individuals who live in a rented house can claim HRA to lower their taxes. HRA, which is part of the basic salary, is fully or partially exempt from taxes.
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