What is research allowance? #
Research allowance is paid for motivating the research pursuit in academic and professional projects by the employer. Research allowance is paid usually in pharma, automobile, and tech companies where there are constant product development is under process.
Many companies provide a separate portion of the CTC for incurring external training expenditures, mobile bill payments, and purchase of books/periodicals and any such allowance is exempt to the extent of expenditure incurred.
Research is an important aspect of any industry, and it is no different in India. With advancements in technology and globalization, research has become a crucial part of business operations. To promote and encourage research activities in India, the government has introduced a research allowance in the Indian payroll.
A research allowance is a monetary benefit provided to employees who engage in research activities in their respective fields. This allowance is a non-taxable benefit, and it is given in addition to the employee’s regular salary. The research allowance is aimed at encouraging and promoting research activities in India by providing financial support to employees engaged in research work.
Who is Eligible for Research Allowance? #
The research allowance is available to employees who are engaged in research activities related to their field of work. This allowance is available to employees in both the public and private sectors. However, to be eligible for this allowance, the research activities should be conducted within India. Moreover, employees must provide proof of their research activities to their employer to avail of this benefit.
How Much is the Research Allowance? #
The research allowance is a non-taxable benefit, and the amount of the allowance varies depending on the employer. According to the Income Tax Act, of 1961, an employer can provide up to Rs. 1,00,000 per annum as a research allowance to an employee. However, the employer can provide a higher amount as a research allowance based on their discretion.
How is the Research Allowance Paid? #
The research allowance is paid to the employee as a separate component in their salary slip. This allowance is paid in addition to the employee’s regular salary and is not subject to tax deductions. However, the employer must ensure that the employee provides proof of their research activities to avail of this benefit.
Conclusion #
The research allowance is an important benefit that encourages employees to engage in research activities related to their field of work. This allowance is a non-taxable benefit that is provided in addition to the employee’s regular salary. The research allowance is aimed at promoting research activities in India by providing financial support to employees engaged in research work. However, it is important for employees to provide proof of their research activities to their employer to avail of this benefit.
