Tuesday, August 11, 2020
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Employees eligible to claim Exemption for Tour, Travel and Conveyance Expenses incurred officially in Alternate Tax Regime: CBDT notifies Income-tax (13th Amendment) Rules, 2020

By Taxscan Team -

The Central Board of Direct Tax (CBDT) on Friday notified the Income-tax (13th Amendment) Rules, 2020. Those who opting alternate tax regime u/s. 115BAC of the Income Tax Act are eligible to claim the exemption for Tour, Travel, and Conveyance Expenses incurred officially.

The Board sought to amend the Income-tax Rules, 1962, shall come into force from April 1, 2021, and shall accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years.

In rule 2BB, after sub-rule (2), the sub-rule (3) “notwithstanding anything contained in sub-rule (1) and (2), an employee, being an assessee, who has exercised an option under sub-section (5) of section 115BAC shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule (1) and at serial no.11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any, specified therein,” shall be inserted.

In rule 3, in sub-rule (7), in clause (iii), after the proviso, the proviso “provided further that the exemption provided in the first proviso in respect of free food and non- alcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised an option under sub-section (5) of section 115BAC,” shall be inserted.

To Read the full text of the Notification CLICK HERE