What types of expenses may be deducted from income with regard to Chanda?

The income upon which Chanda is payable refers to all kinds of income from all sources. Only the following payments may be deducted from actual income:

• Allowances given to employees whose expenditure is not in the hands of the employee.
• Mandatory federal and state taxes levied by the government.
• Health insurance premiums.
• Allowances given to employees for specific expenditures, e.g., uniform allowance, education allowance, or children's allowance.
• Allowances paid for the performance of official duties, e.g., traveling allowance (TA) or per diem (DA).