GOVT ALLOWS I-T EXEMPTION ON CONVEYANCE ALLOWANCE UNDER NEW TAX REGIME – BUSINESS STANDARD:
GOVT ALLOWS I-T EXEMPTION ON CONVEYANCE ALLOWANCE UNDER NEW TAX REGIME – BUSINESS STANDARD
The government has allowed individuals under the new lower tax regime to claim I-T exemption on conveyance allowance received from employers.
The Central Board of Direct Taxes (CBDT) has now amended Income Tax rules to prescribe certain exemptions which can be availed by the employees.
These include any allowance granted to meet the cost of travel on tour or on transfer, any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.
It also includes exemption for any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit, provided that free conveyance is not provided by the employer.
The CBDT has further clarified that while determining value of perquisites, no exemption will be available in respect of free food and non-alcoholic beverage provided by employer through paid voucher.
Further, blind, deaf and dumb or orthopedically handicap employees can also claim ad-hoc exemption of transport allowance of Rs 3,200 per month while computing salaried income.
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