Income From Salary (Fully Taxable Allowance)

Fully Taxable Allowance 

1. Dearness Allowance (D.A) :- Dearness allowance is paid to employees who migrate from the city of their residence to another for job purpose. The allowance helps them to deal with inflation related expenses and difference in cost of living for employees living in different towns and cities.

2. Fixed Medical Allowance:- Medical allowance is a fixed allowance paid to the employees of a company on a monthly basis irrespective of whether they submit the bills to substantiate the expenditure or not.

3. Tiffin Allowance:- Some times employer may provide tiffin/meals allowance to the employee.

4. City Compensatory Allowance(CCA):- This Allowance is given in big city due to high cost of living or inflated Costs in the cities 

5.Overtime Allowance:- Employer may provide an overtime allowance to employees working over and above the regular work hours.

6. Entertainment Allowance:- This Allowance is firstly fully Taxable then deduction is allowed under section 16 (ii)

7. Non - Practising Allowance:- It is given to the Doctors employed by the government.

8. Cost of living Allowance:- it is part to the lower income group employee and is linked with the cost of living index numbers. It is just like dearness allowance and is fully included in Taxable Salary.

9. Servant's Allowance:- It is paid to employees posted at some higher posts for compensating them for the payment made by them in keeping servants for their personal or domestic works.