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Friday, July 03, 2020

New Tax Regime: CBDT allows individuals to claim exemption on tour, conveyance allowance

Further, blind, deaf and mute or orthopedically handicap employees can also claim ad-hoc exemption of transport allowance of Rs 3,200 per month while computing salaried income.

By: ENS Economic Bureau | New Delhi | Published: June 28, 2020 12:49:29 am
CBDT has, however, clarified while determining value of perquisites, no exemption shall be available in respect of free food and non-alcoholic beverages provided by employer via paid vouchers.

The Central Board of Direct Taxes has allowed individuals who have opted for the new income tax regime to claim exemption on tour and conveyance allowance received from employers.

The income tax department has now amended income tax rules to prescribe certain exemptions to be availed by employees such as 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. Further, blind, deaf and mute or orthopedically handicap employees can also claim ad-hoc exemption of transport allowance of Rs 3,200 per month while computing salaried income.

CBDT has, however, clarified while determining value of perquisites, no exemption shall be available in respect of free food and non-alcoholic beverages provided by employer via paid vouchers.

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