Income-tax (17th Amendment), Rules, 2002 - 184/2002 - Income Tax

Income-tax (17th Amendment), Rules, 2002 NOTIFICATION N0.184 Dated 23rd July. 2002 In exercise of powers conferred by section 295, read with clause (2) of Section 17 and Sub-section (2C) of Section 192 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. (1) These Rules may be called the Income-tax (17th Amendment), Rules, 2002 (2) They shall be deemed to have come into force on the Ist day of August, 2002. 2. In the Income-tax Rules, 1962, in Rule 3,- (i) In sub-n4e (2), for clause (B), the following clause shall be substituted, namely:" "(B) Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor car owned by the employee for official purposes is more than the amounts deductible in items 2(ii) or 3(ii) of the above Table, he may claim higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled:- (a) the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure, incurred thereon; (b) the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties."; (ii) in sub-rule (7),-(a) for clause (v), the following clause shall be substituted, namely:- "(v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card), provided by the employer or otherwise, paid for or reimbursed by the employer shall be taken to be the value of perquisite chargeable to tax. However, there shall be no value of such benefit where the expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:- (a) complete details in respect of such expenditure is maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure; (b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity." (b) in clause (vi), for sub-clause (B), the following sub-clause shall be substituted, namely:- "(B) Nothing contained in this sub-rule shall apply if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled:- (a) complete details in respect of such expenditure is maintained by the, employer which may, inter alia, include the date of expenditure, the nature of expenditure and its business expediency; (b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties."; Sd/- (Sebastain James) Under Secy, (TPL-II) F.N0.142/28/2002-TPL Footnote: The principal rules were published under Notification No.S.0.969(E) dated 26-3-1962 which has been amended from time to time, the last such amendment was made vide Notification No.313/2001 dated 25-9-2001.