Definition: What is Allowance Meaning? Allowances are the supplementary payments or benefits provided to employees along with their base salary to address their specific needs, expenses, or circumstances. These allowances play an important role in supporting employees in different aspects of their professional and personal lives. That’s why it’s important for you as HR to understand the different types of allowances that exist and their significance to ensure that the organization you ... Allowances are the financial benefits that are given to the employees by the employers over their regular salary. While some allowances are taxable under the head salaries, some are partially taxable or fully non-taxable. In general terms, any monetary benefit offered to employees for meeting expenditures over and above the basic salary is called Salary Allowances. According to the Income Tax Act, allowances are added to the salary of an individual and taxed under the head income from ... Learn the meaning of allowance as a noun and a verb, with synonyms, pronunciation, and usage examples. Find out the different types of allowance, such as money, food, tax, baggage, and horse racing. Learn about different allowances in salary from dearness allowance to house rent allowance, their calculation, taxation, and exemption rules.
