Business Attire Allowance

Hi,

If business attire allowance is part of the CTC, Will that allowance be taxable or not?

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Business Attire allowance is not taxable if they produce purchase bills like reimbursement.

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A few clarifications on Business Attire Allowance

  • how much allowance can be given monthly for Business Attire?
  • is this for purchase of business attire and also subsequently Washing & Cleaning via Laundry bills?

Can you share more information on this type of Allowance and who does it cater to ie. Factories/Industries or even Software Organisations etc

Regards
Venkat

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Hi @A984SCE (Venkat).

“any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit” is exempt from tax, provided fulfilling the terms and conditions.

Attire allowance is exempt from tax u/s 10(14)to the extent of actual expenditure or allowance amount whichever is lower.

And this cannot be claimed if there are no uniform procedure in your company.

  • is this for purchase of business attire and also subsequently Washing & Cleaning via Laundry bills?

In a regular day to day work ‘No’ they are not covered but when you’re out of town ‘Yes’ they can be reimbursed.

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Uniform Allowance: Any allowance, by whatever name called, granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of duties of an office or employment of profit is fully exempted from Tax.

The amount exempt for the above mentioned allowances shall be least of the following:-

  1. Amount received
  2. Amount actually spent

The above is applicable if you have Uniform procedure.

But you can cover Business Attire as Tax Free Component for Senior Employees of organisation for purchase of Blazers etc so they can use it during meetings within or outside the city

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Very valid point made by @Ankit :slight_smile: missed it

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