Yes, by default, these allowances are taxable provided the employee is crossing the tax slabs for that particular financial year; however, you have an option to deduct the tax accumulated by adding these allowances in the current payroll, or split it equally for future remaining months in the financial year.
Are bonus or any other interim allowances taxable? Print
Modified on: Wed, 23 Jul, 2025 at 6:51 PM
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