Allowances Archives | H&R Block | Blog
March 5, 2017

Tax Exemption on Car Allowances & Expenses Reimbursement

Company offers car expenses reimbursement to its employees if these expenses are incurred for official duties.  Car allowance income tax liability when owned by the employee is based on the purpose of use: private, official or both. Following points will help us understand taxability of […]
October 3, 2016
7th pay commission

Government Doubles HRA under Seventh Pay Commission

In this ongoing festive season, government has delighted salaried taxpayers by boosting their HRA. The decision was taken by the Committee on Allowances which was set up to settle ongoing issues on allowances. Government had earlier notified a 2.57-time hike in basic salary for over […]
April 28, 2016
Leave Travel Allowance

Leave Travel Allowance (LTA)

Leave Travel Allowance (LTA) is the most common element of compensation adopted by employers to remunerate employees due to the tax benefits attached to it.  LTA is the remuneration paid by an employer for employee’s travel in the country, when he is on leave with […]
July 28, 2015
House Rent Allowance

House Rent Allowance (HRA) as Income Tax Saving Tool

  House Rent Allowance (HRA) is allowance paid by employers to their employees as a compensation for the rent they pay for residing at homes in the city where their work place is located. However, it is paid to employees by their employers irrespective of […]
January 8, 2015

House Rent Allowance for Tax Exemption

To avail full benefit of tax exemptions, a well-defined salary structure is very crucial. House Rent Allowance (HRA), if included in the salary, can help individuals save tax. In this article we will explain how tax exemptions are calculated on HRA received and certain important […]
November 20, 2014

Can We Claim Tax Benefits on HRA & Home Loan Together?

With real estate developers doling out attractive schemes, home buyers aren’t worried about the equated monthly installment burden alone. What has been disturbing them is the loss of the house rent allowance benefit that they had been claiming so far. Since the possession of these […]
November 18, 2014

Children Education Allowance Exemption & Rules

Education facility provided by employer to employee is treated as perquisite. Following are some key considerations from the point of view taxation. Amount spent by employer for providing free education facility & training of employee is not taxable. Fixed education allowance received from employer is […]
November 11, 2014

Leave Travel Allowance (LTA) Exemption & Rules

Employer gives Leave Travel Allowance to their employees for travelling expenditure in India. Leave Travel Allowance paid by employer is exempt two times in a block four years period. This exemption can be claimed once in period of two years. Following points must be considered […]
October 22, 2014

Leave Salary Encashment Exemption

Every organization offers certain number of paid leaves for its employees. Many times employees accumulate such paid leaves. If and when these leaves are en-cashed by the employee, there are tax implications on the same. In this article we will discuss leave encashment from taxability […]
October 13, 2014

LTA or Leave Travel Allowance- Tax Exemption Under Section 10(5)

With several long weekends slated ahead during the year, have you been planning a vacation? Since we have entered a fresh block this year to claim the leave travel allowances, special focus should be given to your travel plan to make the most of both […]