INCOME TAX FAQ : What are allowances? Are all allowances taxable? ​What is considered as salary income? ​​​ section 17​​ of the Income-tax Act defines the term 'salary'. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary. ​What are allowances? … [Read more...] about INCOME TAX FAQ : What are allowances? Are all allowances taxable?