What is the difference between Special allowance and Other Allowance? What impact it has on IT declaration for salaried employees
Special Allowance is taxable Income Other allowance we can show it in non taxable income. Like other allowances - HRA, Conveyance, Medical, Food
So Other allowance can be shown as separate components or is it the combination of HRA Conveyance Medical and food.
We are trying to structure our salary components and need few clarification before we ahead fix it.
As I understand conveyance medical and food allowance are also taxable.
It is not much of a difference either you call it Special Allowance or Other Allowance it is taxable.
You cannot combine HRA, Conveyance and Medical and show it as Other Allowance. To give exemptions to employees it has to be paid in that particular head else it will be taxable.