Allowances which are exempted include the following:
- House Rent Allowances (HRA) granted to an employee to meet the expenses incurred on rent payment of residential accommodation occupied by him to the extent of least value of following:
- An amount equal to 50% of basic salary due to assessee (If accommodation is situated in Mumbai, Kolkata, Delhi).
- Rent paid in excess of 10% of the salary of the assessee.
- House Rent allowance received.
- Travelling Allowances granted for tour or journey in connection with transfer.
- Conveyance Allowances granted for conveyance during duties of an office provided free conveyance is not provided.
- Uniform Allowances granted for the purchase or maintenance of uniform to be worn during duties of an office or employment of profit.
- Research Allowances granted to encourage academic, research and training pursuits.
- Helper Allowances granted to cover the expenses of a helper engaged for performance of duties of an office or employment of profit.
Please note that the last date for filing income tax returns is July 31, 2014 for assessment year 2014-2015 and Financial Year 2013-2014.
Last year, the Income Tax Authorities had extended the last day to August 31, 2013. Avoid last minute of filing tax returns as you could encounter a busy server of the income tax. However, there are also many popular websites that help you file your income tax returns. Read more on them by clicking here. Please check your income tax return form carefully, as rectification may be a tedious process. Also early filing of returns would help you better in rectifying your returns, if there is a problem.