As
per the New Finance Budget 2015, has increased some limit of Income Tax
Section which is given below. Most of the employees not to able the
Maximum Limit of Washing/Uniform Allowances U/s 10(14A) here is given
below the how much limit of Uniform Allowances.
When exemption depends
upon actual expensiture by the employee – The following allowances are exempt under
section 10(14) to the extent the amount is utilised for the specified purpose
for which the allowance is received . In other words, in the cases given below
the amount of exemption under section 10(14) is_
1. The amount of
the allowance ; or
2. The amount utilised
for the specific purpose for which allowance is given,
whichever is low .
Exemption is available
on the aforesaid basis in the case of following allowances-
Name of the allowance
|
Nature of allowance
|
Travelling allowance/transfer allowance
|
Any allowance (by whatever name called)
granted to meet the cost of
travel on tour or on transfer(including any sum paid in connection with
transfer, packing and transportation of personal effects on such transfer).
|
Conveyance allowance
|
Conveyance allowance granted to meet the
expenditure on conveyance in the performance of duties of an office
Note pls.: Expenditure for
covering the journey between office and residence is not treated as
expenditure in performance of duties of the office and, consequently, such
expenditure is not exempt from tax under
this section. This allowance is covered separately under “Transport
allowance” where a fixed exemption uptoRs 800 per month is given to such
allowances in case of all employees. However, with introduction of finance
act 2015 such exemption is increase to Rs. 1600 per month with prospective
effect.
Example:
Conveyance
allowances given to an employees for travelling done by employee for
attending income tax hearing for presenting income tax hearing
|
Daily allowance
|
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.
|
Helper allowance
|
Any allowance (by whatever name called) to
meet the expenditure on a helper where such helper is engaged for the
performance of official duties.
|
Research allowance
|
Any allowance (by whatever name called)
granted for encouraging theca academic research and other professional of official duties.
|
Uniform allowance
|
Any allowance (by whatever name called) to
meet the expenditure on the purchase or maintenance of uniform for wear
during the performance of duties of an office.
Pls. note: Benefit under this
allowance can be taken only when a specific uniform is prescribed for office
duties.
|
