12. Conveyance/Transport allowance

Transport allowance is granted to the company employees to meet all the expenditure of commuting between his residence and the place of duty.

Every company provides their employee with conveyance / transport allowances depending on the company standards. An employee of any company is tax free up to Rs 9,600.

13. Medical allowance

Most of the companies including government companies have some fixed percentage that goes to your medical allowance which differs from person to person.

The way companies gives these medical allowances differ. Some companies include medical allowance along with the in hand salary and other companies give it when the individual is leaving the company.

Medical allowances which are given to the employees are tax free up to 15, 000.

14. House Rent Allowance

It is the allowance given by the employer to pay the rent of the house in which he lives. So HRA is taxable if employee lives in a house for which he pay no rent or lives in his own house 50 per cent of annual basic (40 per cent of annual basic in case of non-metros)

a) Actual HRA received

b) Rent paid: 10 per cent of annual basic.

Also Read:

Why India Is Loosing FDI Investments?

What Small Business Owners Should Follow To Get Tax Redemptions?