Tax-Exempt Salary Components
Salary components that are exempt from tax liability include allowances such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and medical reimbursements. These components are excluded from the taxable income of an employee, providing them with certain tax benefits. It's important for both employees and employers to be aware of these exemptions to ensure compliance with tax regulations.
Salary components that are exempt from tax liability include allowances such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and medical reimbursements. These components are excluded from the taxable income of an employee, providing them with certain tax benefits. It's important for both employees and employers to be aware of these exemptions to ensure compliance with tax regulations.