1. Allowances to Government Employees Outside India

Government employees serving abroad, including diplomatic and consular staff, receive allowances for accommodation, travel, and living expenses. These allowances are fully exempt under Section 10(7) of the Income Tax Act, provided the individual is a government servant and the allowance is directly related to foreign service duties.

2. Allowance to High Court & Supreme Court Judges

Judges of the High Court and Supreme Court receive specific allowances as part of their service benefits. These allowances, which may include housing, travel, and daily expenses, are exempt from income tax as per Section 22B of the Act. This exemption ensures judicial independence and recognizes the stature of the office.

3. Compensatory Allowance Received by a Judge

In addition to basic pay, judges may receive compensatory allowances for working in remote, high-cost, or high-responsibility jurisdictions. These allowances are fully exempt under Section 22B to acknowledge the nature of judicial service and the associated costs and challenges of such roles.

4. Special Allowances Exempt under Section 10(14)

Section 10(14) of the Income Tax Act allows exemptions for certain special allowances granted to employees for the performance of official duties. The following are specific cases where such exemptions are applicable:

• (i) Allowance granted to meet the cost of travel on tour

This allowance covers travel expenses incurred by the employee while performing duties away from the normal workplace and is fully exempt.

• (ii) Allowance granted to meet the cost of daily charges incurred on tour

Daily allowance provided to cover food, lodging, and incidental costs during business travel is exempt under Section 10(14)(i).

• (iii) Allowance granted to meet expenditure incurred on conveyance in performance of duties

Employees who use personal transport for office-related movement may receive a conveyance allowance that is exempt when no free conveyance is provided by the employer.

• (iv) Allowance granted to meet expenditure incurred on helper in performance of duties

Such allowances are given to employees who engage a helper for performing official tasks. These are exempt only if the helper is exclusively for official duties.

• (v) Allowance granted for encouraging academic, research & training pursuits in educational & research institutions

Educational and research institutions may grant allowances to support professional development, research, and training, which are exempt if directly related to job duties.

• (vi) Allowance granted for expenditure incurred on purchase or maintenance of uniform for wear during performance of duties

Employees who are required to wear a specific uniform during duty hours may receive an allowance for uniform purchase or maintenance, which is exempt under Section 10(14).