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2013 (9) TMI 683 - HC - Income TaxTDS on Perquisites - Payment of conveyance allowance to Development Officers of LIC of India are salaried persons - scope of section 10(14)(i) - exemption – Held that:- For getting the business, they were paid conveyance/additional conveyance allowances and also incentive bonus - "Perquisite" is excluded from the purview of Section 10(14). 'Perquisite' is defined under Section 17(2) of the Act. Explanation 3 under Section 17(2) clearly provides that Salary includes the pay, allowance, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called, from one or more employers, as the case may be - Conveyance/additional conveyance allowance is covered by the word "perquisite" and the same is taxable. - LIC is not competent to determine the allowances which are exempted from the tax. Letter dated 07.04.2004 has rightly been issued by the Senior Divisional Manager, LIC for deducting the Tax at source from the amount paid pertaining to the conveyance/additional conveyance allowances incurred in the performance of duty as Development Officers for generating the business being a permissible deduction as the same is exigible to tax. The members of the petitioner's association being salaried persons on furnishing their return of income return be assessed by the assessing authority and it is only after due assessment he entitled for refund of the amount, if any, deducted by the employers conveyance allowance – Writ petition dismissed.
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