Any allowance that compensates you for expenses incurred in the course of your employment is exempt from tax under the Income Tax Act. This is irrespective of whether it is for services rendered in India or overseas. But the allowance must be backed by bills or a declaration from the employee that the money was used for the intended purpose.
Interim Budget 2024: The government’s decision to waive old tax demands of less than Rs 25,000 might not be the end for many long-standing petty tax disputes.
Tax deductions for health insurance premium payments and medical expenses under Sections 80D, 80DD and 80DDB need to be hiked to adjust for inflation, in Interim Budget 2024