Understanding Telephone Allowance: Is It Exempt from Taxes or Not?

Can anyone understand whether the Telephone Allowance will come under exemption or not?

It will be part of taxable income, depending on whether it is paid along with the salary or not. If you are paying it as a reimbursement through a voucher, then it may not be part of annual income and thus may not attract any tax on it.

Dear SS All Mails,

Please understand that as per the Income Tax Act, any allowance in the name of salary is taxable under the provisions of the act. If the allowance is an integral part of the salary, then the entire allowance, including the salary, is taxable.

According to Mr. Manojkamble, reimbursement claimed after payment of telephone charges by you is not taxable. Therefore, please assess your situation accordingly.

Ramadurai.K.R.
Finance Head
Social Science Research Institute
Chennai