State which of the following is a taxable allowance and the quantum of allowance liable to tax in the hands of salaried employees: Leave travel allowance ₹ 10,000 (fixed) given every year to employees above certain grade

Leave travel allowance is eligible for exemption under section 10(5) twice in a block of four years subject to actual expenses incurred and certain conditions. However, the fixed travel allowance given by the employer to employees without verification of actual expenditure incurred is fully taxable. Hence, ₹10,000 is taxable under the head of salaries.