What is the difference between allowance and perquisite? Are these considered as my income?

Allowances and perquisites are both benefits that an employer may provide to an employee in addition to their salary. However, there are some key differences between the two.

• Allowances are payments made by the employer to the employee to cover certain expenses, such as house rent, conveyance, medical expenses, or travel expenses. Allowances are typically taxable as part of the employee's income, but some allowances may be exempt from tax up to a certain limit.
• Perquisites are additional benefits the employer provides in the form of goods or services, such as accommodation, a company car, or club memberships. Perquisites are subject to valuation. The value of the perquisite is added to the employee's taxable income.

Here is a table summarizing the key differences between allowances and perquisites:

I hope this helps! Let me know if you have other questions.