Section 10(14)(i) tax exemption in ITR: Rules salaried taxpayers should know before claiming allowance benefits

Section 10(14)(i) of the Income Tax Act exempts specified salary allowances only for genuine official expenses incurred wholly, necessarily, and exclusively for employment duties.

The exemption applies only when a specified allowance is received from the employer and is actually spent on official duties; simply reporting the expense in the ITR does not qualify.

Misused claims can lead to disallowance during assessment, along with interest and penalties, as warned by CA & Advocate Kinjal Bhuta of BCAS.

Taxpayers should avoid relying on unverified tax-saving claims and ensure proper documentation to substantiate expenses.