|
|
|
|
Annexure
B 3
List
of Exempted Allowances
(As per Rule 2BB read with Section 10 (14) )
As
stated above, the provisions of Rule 2BB of the
Income Tax Rules, prescribe certain allowances
and the extent thereof, which would be exempt
under Section 10 (14). These are summarised below:
|
|
Nature
of Allowance
|
Maximum
Amount Exempt
|
|
1
|
specified
special area allowances
|
rates
specified for each area from time to time
|
|
2
|
children's
education allowance
|
rs100/-
per month per child upto maximum of 2 children
|
|
3
|
hostel
expenditure allowance
|
rs
300/- per month per child upto maximum of 2 children
|
|
4
|
conveyance
allowance
|
transport
allowance granted to an employee to meet his expenditure
for the purpose of commuting between the place
of his residence and the place of his duty, shall
be exempt upto rs. 800 per month.
|
|
5
|
travel
on tour or transfer
|
expenditure
incurred on tour or transfer.
|
|
6
|
daily
expenses on tour or transfer
|
daily
expenditure incurred.
|
|
7
|
helper
allowance
|
expenditure
incurred on a helper engaged for performance of
official duties.
|
|
8
|
academic
research / professional pursuits allowance
|
expenditure
incurred on academic research / professional
pursuits in education and research institution.
|
|
9
|
apparel
allowance
|
expenditure
incurred on purchase / maintenance of uniform
for wear during the performance of duties of an
office.
|
|
10
|
travel
concession / assistance
(section 10(5) & rule 2b & section 10(6)(i)):
|
the
said section as amended with effect from 1.4.1989,
provides that the value of any travel concession
or assistance provided by or due to him, by his
employer in connection with his or his family
members proceeding on leave to any place in india,
or in connection with such travel to any place
in india after retirement or termination from
services, shall be exempt from tax to the extent
of actual air / railway fare. this exemption can
be availed of by the individual for any two journeys
undertaken in a block of 4 calendar years, beginning
the first block from 1986-89. the quantum of exemption
will also be subject to the following restrictions:
|
|
Basis
of Taxability
|
Value
of Exemption
|
|
for
journeys performed by air
|
air
economy fare of the national carrier by the shortest
route to the place of destination.
|
|
where
the place of origin of journey and destination
are connected by rail, but journey is performed
by rail or by any other mode of transport.
|
air-conditioned
first class rail fare by the shortest route to
the place of destination.
|
|
where
the place of origin of journey and destination
or part thereof are not connected by rail, and
journey is performed between such places.
|
if
a recognized public transport system exists between
such places, the first class or deluxe class fare
on such transport by the shortest route to the
place of destination.
in
other case, air-conditioned first class rail fare
for the distance of the journey by the shortest
route, as if the journey has been performed by
rail.
|
|
passage
money on home leave to foreign employees, not
being citizens of india
|
value
of passage money or concession received from employer
for himself, spouse and children in connection
with his proceeding to his home country outside
india, or on retirement / termination, subject
to following condition;
|
|
|
