Confusion in Tax Calculation

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Dear Sir/Madam,

I'm SAIL, Bokaro Steel Plant employee and as per my Company Payslip Taxable Items are 1. LEAVE ENCASHMENT, 2. CANTEEN ALLOWANCE, 3. INCENTIVE, 4. REWARD & 5. ENERGY ALLOWANCE But, as per your "Income Tax Calculator FY 2012-13 (AY: 2013-14)" 1. LEAVE ENCASHMENT, 2. FOOD COUPONS / CANTEEN ALLOWANCE, are Non-Taxable Items.

Plz tell me - What is Correct?

Thanks & regards.

(Parmanand Prasad) E-mail : [email protected]

food-coupons canteen-allowance leave-encashment income-tax
1 Answers

This allowances are not necessarily tax free and there are conditions for them to be non-taxable.

Leave encashment is non-taxable only on leaving service, that too upto certain limits. Read here: Leave encashment non taxable

Food coupons are non-taxable up to Rs 50 per meal. For a 22 days working month, Rs 1100 may be non-taxable. This is only applicable if you get food coupons (like Sodexo) in-spite of amount in salary.

Pankaj Batra5212
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