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Income Tax Planning: Exempt Allowances

Exemptions: Certain components of the salary that an individual receives are exempt from income tax. Some of these components are:
Medical Allowance: An individual can claim exemption for upto INR 15000 in a financial year for medical reimbursement received from the employer.
Transport Allowance: Transport allowance of upto INR 800 a month is exempt from income tax.

 

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