Confusion in Tax Calculation

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]

asked Aug 26 '12 at 18:28 by pnp_65 1111

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.

answered Aug 29 '12 at 17:24 by Pankaj Batra 5.2k320


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Asked: Aug 26 '12 at 18:28

Seen: 2,363 times

Last updated: Aug 29 '12 at 17:24