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Allowance & Reimbursements: There are only a few hours left for the General Budget-2023 and it will be presented by Finance Minister Nirmala Sitharaman on February 1, 2023. On the other hand, with the presentation of the budget, many types of terms come in front of us. We used to sweat in understanding these terms, but now there is no need to worry, today we are going to give you important information about terms like allowances and reimbursements related to the budget, where you can easily understand them next time you come across them. Will be able to understand
What is allowance and reimbursements
Let us tell you that salaried people get many types of allowances and reimbursements from their employers, which are fully taxable or their parts are taxed. Explain that the tax levied in these is subject to certain conditions, along with this we can understand it like this. In other words, allowance and reimbursements are defined, then allowance is the amount given to the employees, whether they want to spend or not. Along with this, reimbursement is the amount received by the employees, which is received only after the employees have spent money on hospitalization, travel, etc.
Know the types of allowance
Explain that the allowance which does not come under the purview of any other type of allowance is called special allowance. Along with this, employees also get an allowance for working overtime, children’s education, hostel expenditure, etc. While Special Allowance, Overtime Allowance are fully taxable, Children Education Allowance, Hostel Expenditure Allowance are also tax exempt.
What is Medical Reimbursements
Under this, the employee can get tax exemption on an amount of up to Rs 15,000 annually for the treatment of himself, son, daughter, wife etc. Also, no tax is charged on the amount of medical insurance premium deposited or reimbursed by the employee.
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