SME Times is powered by   
Search News
Just in:   • Tesla all set to drive into India market with first showroom in Mumbai  • Indian mining and construction industry sees 2-5 pc growth in Q1: Report  • Sensex, Nifty open higher amid positive domestic cues  • TN yarn manufacturers form association to revive struggling sector amid rising costs  • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia 
Last updated: 29 Jun, 2020  

Tax.9.Thmb.jpg Employees can claim exemption on conveyance allowance under new I-T regime

Tax.9.jpg
   Top Stories
» Tesla all set to drive into India market with first showroom in Mumbai
» Sensex, Nifty open higher amid positive domestic cues
» TN yarn manufacturers form association to revive struggling sector amid rising costs
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
SME Times News Bureau | 29 Jun, 2020
In a major relief for salaried taxpayers, the Central Board of Direct Taxes (CBDT) has said that under the new income tax regime, employees can claim for tax exemption on conveyance allowance received from their employers

The Income-tax (13th Amendment) Rules, 2020, which includes the provision, shall come into force from April 1, 2021 and shall accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years.

The new optional tax regime was announced in this year's budget, wherein income tax rates would be lower for the individual taxpayers given they forgo deductions and exemptions such as investment in the insurance policy, NSC, PPF and others.

Rajat Mohan, Senior Partner at AMRG & Associates said: "CBDT has amended the income tax rules to allow certain exemptions to the employee in the new tax regime. These include allowances to cover travel costs on tour or transfers, ordinary daily charges incurred on account of absence from his normal place of duty and conveyance allowance."

He noted that initially in the new regime most of the allowances and exemptions were withdrawn and the department has made a change in the basic fundamental idea of the new regime.

"Though, this is a welcome move for many employees for whom these expenses are on behalf of the employer and shall not be taxed in the hands of the employee. However, this can be a beginning to a plethora of notifications and circulars making the new regime equally complicated as the old one. If more of these exemptions are introduced, the new regime will lose its cardinal nature of simplicity," Mohan added.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter