Deduction of tax at source--Income-tax deduction from salaries - Reference is invited to this Department's Circular No.195 (F.No.275/47/76-ITJ)* dated March 25, 1976, on the above subject.

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..... h 25, 1976, on the above subject. Circular No. 196 Dated 31/3/1976 This department has received several references, enquiries, etc., from various private and public establishments seeking clarification on the point of admissibility of standard deduction under section 16(1) in cases where the employees are in receipt of conveyance allowance. The procedure for deduction of tax at source explained .....

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..... thin the meaning of clause (c) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, to the extent to which such expenses are actually incurred for that purpose. Explanation.-- For the removal of doubts, it is hereby declared that any allowance granted to the assessee to meet his per .....

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..... from this allowance. However, at the same time it will have to be ensured that a certificate in terms of section 10(14) is endorsed on the tax deduction bills, by the disbursing authority. The employees who are in receipt of conveyance allowance would also have to furnish the necessary certificate before the assessing authorities in support of the fact that conveyance is only a reimbursement of e .....

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