What​‍​‌‍​‍‌​‍​‌‍​‍‌ Is Section 10(14)(i) of the Indian Income Tax Act?

Section 10(14)(i) of the Income Tax Act of India is a real godsend for the people living on a salary and the employees. With it, the employees can take a deduction for tax on some allowances granted to them by their employer—that is, the money they spend on their job. Suppose you are traveling for your office work, buying uniforms, sending your kids to school, or simply paying for a helper—this section can make those money outflows mostly tax-free. The catch? One only saves tax on the money he actually spends (not an extra pocket).

Key Points:

Eligibility:

Such allowance has to be given to you personally by your employer.

The work for which the allowance is given has to be official (not for personal comfort).

It is better to use only what you really spend on—because an unused allowance will be taxed.

Popular Exempt Allowances:

Children’s Education: ₹100 per month per child (max 2 children).

Hostel Expenses: ₹300 per month per child (max 2 children).

Conveyance: No more than ₹1,600 per month if used for official duties.

Helper Allowance: What you pay to a helper for your work.

Daily Allowance: Used for official travel or transfers.

Uniform Allowance: What you pay for work uniforms.

Special Duty Allowance: What you use for work in your line of work (receipts are important!).

Remote/Hilly/Border Area Allowance: Can be anywhere between ₹200 and ₹7,000 per month depending on your posting.

How Does It Work in Real Life?

A teacher who uses ₹200 per month for buying uniforms can only write off an amount up to that.

If you are receiving ₹1,600 for conveyance but only spend ₹800, then only ₹800 will be tax-free, while the remaining will be taxed.

Every claim must have the support - in the form of bills, receipts, and sometimes employer forms.

Claiming the Exemption:

Don't forget to save your bills!

Reveal these expenses in your income tax return (ITR)—never forget the necessary supporting documents.

Confirm with your employer the format of the document that he prefers—especially if it's related to education or conveyance.

When in doubt, refer to Section 10(14)(i) "allowance" in your salary breakup or Form 16.

Old vs New Tax Regime:

The majority of 10(14)(i) exemptions will only be valid if you are filing under the Old Tax Regime; the New Regime (from 2020) is mostly leaving out the exemption in favor of a flat structure. So, it is better to check before deciding your regime for the year.

Practical Tip:

Make good use of Section 10(14)(i) and do not let money slip out of your hands. In case you are claiming for your child's education or for official traveling, make sure to keep every bill—even those which look insignificant.

Don't forget that if something is not clear to you, a quick talk with your employer's HR or a tax advisor will make it much easier. Section 10(14)(i) is about giving back to you for the money you spend to keep your job going!

Summary Table: Most Used Section 10(14)(i) Allowances

Allowance Type Exemption Limit Extra Notes

Children Education ₹100/month per child (max 2) At times, bills are required

Hostel ₹300/month per child (max 2)

Conveyance Up to ₹1,600/month Just the actual expenditure, not the excess

Daily/Transfer Travel Actual expense incurred Always keep the travel receipts

Uniform Actual spend (up to ₹600/year) If the job is a mandatory uniform one

Helper Actual spend Just receipts will be enough

Remote/Difficult Postings ₹200–₹7,000/month (as notified) Confirm your location with the notification

By implementing this tactic, you will be able to fully utilize your Section 10(14)(i) exemption and at the same time not breach the rules. In other words, more of your hard-earned money stays with you, while you are compliant with the requirements of the tax ​‍​‌‍​‍‌​‍​‌‍​‍‌department.