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Which of the following allowances is fully taxable under the head "Salaries"?
  • a)
    House Rent Allowance
  • b)
    Children Education Allowance
  • c)
    City Compensatory Allowance
  • d)
    Hostel Expenditure Allowance
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following allowances is fully taxable under the head &quo...
City Compensatory Allowance is an example of a fully taxable allowance under the head "Salaries." This allowance is paid to employees working in big cities to compensate for the high cost of living. The amount of this allowance is taxed along with the salary received.
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Which of the following allowances is fully taxable under the head "Salaries"?a)House Rent Allowanceb)Children Education Allowancec)City Compensatory Allowanced)Hostel Expenditure AllowanceCorrect answer is option 'C'. Can you explain this answer?
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