Hostel Expenditure Allowance is partially exempt from tax under Section 10(14)(ii) of the Income Tax Act, 1961, read with Rule 2BB(2)(g) of the Income Tax Rules, 1962. Exemption Limit: As per Rule 2BB(2)(g): Hostel Expenditure Allowance is exempt up to ₹300 per month per child, for a maximum of 2 chRead more
Hostel Expenditure Allowance is partially exempt from tax under Section 10(14)(ii) of the Income Tax Act, 1961, read with Rule 2BB(2)(g) of the Income Tax Rules, 1962.
Exemption Limit:
As per Rule 2BB(2)(g):
Hostel Expenditure Allowance is exempt up to ₹300 per month per child, for a maximum of 2 children.
✅ Maximum exemption = ₹300 × 2 children × 12 months = ₹7,200 per annum
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A “Specified Employee” is a category of employee for whom certain perquisites (non-monetary benefits) provided by the employer are fully taxable under Section 17(2) of the Income Tax Act, 1961, read with Rule 3 of the Income Tax Rules, 1962. As per Explanation (iv) to Section 17(2) of the Income TaxRead more
A “Specified Employee” is a category of employee for whom certain perquisites (non-monetary benefits) provided by the employer are fully taxable under Section 17(2) of the Income Tax Act, 1961, read with Rule 3 of the Income Tax Rules, 1962.
As per Explanation (iv) to Section 17(2) of the Income Tax Act, an employee is called a Specified Employee if he/she meets any one of the following conditions:
✅ Conditions:
Director of the company
Employee with substantial interest (i.e., owns ≥20% of equity shares in the company)
Employee whose salary (excluding non-monetary benefits) exceeds ₹50,000 per annum
🟡 Note: Salary here includes basic, DA (if part of retirement), bonus, commission, allowances, etc.