Home Notifications 1998 Income Tax Income Tax - 1998 Section 295 This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Income-tax (Seventh Amendment) Rules, 1998 - S.O. 395 (E) - Income TaxExtract MINISTRY OF FINANCE (Department of Revenue) (Central Board of Direct Taxes) NOTIFICATION No. 10586 New Delhi, the 13 th May, 1998 INCOME-TAX S.O. 395 (E). -In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961) , the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962 , namely:- (1) These rules may be called the Income-tax (Seventh Amendment) Rules, 1998. (2) They shall be deemed to have come into force on the 1 st day of August, 1997. 2. In the Income-tax Rules, 1962 , in rule 2 BB, in sub-rule (2) , in the Table, after serial number 9, the following serial number and entries relating thereto shall be inserted, namely:- Sl. No. Name of allowance Place at which allowance is exempt. Extent to which allowance is exempt 1 2 3 4 10. Transport allowance granted to an employee to meet his expenditure for the purpose of Commuting between the place of his residence and the place of his duty. Whole of India ₹ 800 per month. [F. No. 142/18/98-TPL] S. BALASUBRAMANIAN, Under Secy. (TPL-III) Note .-The principal rules were published under S.O. 969(E) dated 26-3-1962 and subsequently amended Vide S.O. 390(E) dated 8-5-98 Explanatory Notes. -The Central Government have, on the Recommendations of the Fifth Pay Commission, given to officers and employees of the Central Government, with effect from the 1st day of August, 1997, a transport allowance of an amount not exceeding ₹ 800 per month, in accordance with their entitlement, The officers of the rank of Joint Secretary and above in the Central Government are entitled for official vehicles for the purpose of their journeys from home to office and back in lieu of the transport allowance which is not treated as a perquisite and is not taxed under the Income-tax Act, 1961 . But, the transport allowance given to,- (a) the officers of the rank of Joint Secretary and above who opt for transport allowance in lieu of the said facility of availing of official vehicle; and (b) all other officers and employees, including Group C and D officials for the same purpose is liable to Income-tax. 2. To remove the above anomaly and treat all the persons equally in the matter of taxation of transport allowance, the Central Board of Direct Taxes has decided to exempt with retrospective effect, that is, with effect from the 1 st day of August, 1997, the transport allowance equal to an amount not exceeding ₹ 800 per month drawn by any officer or employee working under the Central Government or State Governments or any establishment other than Central Government or State Governments, under the Income-tax Act, 1961 . 3. It is, therefore, proposed to amend rule 2BB of the Income-tax Rules, 1962 with effect from the 1st day of August, 1997 to give effect to the said proposal. 4. It is certified that the retrospective effect to the proposed amendment to the said Rule 2 BB shall not prejudicially affect the interest of assesses.
|