Understanding Taxable Income: Are Mobile Allowances Taxed for Female Employees?

If someone's salary is $14,000 and mobile allowances are $3,000 per month, does it come under income tax or is it taxable for a female employee?

Hi,

If the total salary for any employee is even 20,000/-, then there is no tax. If the total wages are above 20,000/-, then you have to plan well to design a salary structure.

Thank you.

Understanding Allowances and Reimbursements

Is it a reimbursement or an allowance? If it is an allowance, it will be considered part of the salary and is taxable. If it is a reimbursement, it can be exempted from taxation.

Tax Implications for Salary and Allowances

For example, if the salary is 14,000/- and 3,000/- is a mobile allowance, then the total earnings per month are 17,000/- and 204,000/- per year, making the individual out of the scope of tax.

As per the 2016-17 Budget, up to an income of 250,000/-, the tax is nil. Under Section 87A, if an individual is earning less than 500,000/-, they are eligible for a rebate of 2,000/- on the net payable amount of tax.