- Changes made by CBDT will allow claims in tax exemption in select cases
- Expenditure on daily travel allowance can also be claimed as exemption from income tax.
- new Delhi. The central government will be able to claim income tax exemption on the travel allowance received from companies under the new income tax rule. The Income Tax Rules have been changed by the Central Board of Direct Taxes. Under this change, employees will now be able to claim exemption from income tax in select cases.
- Claims can be made with these changes
– Travel and Transfer Allowance.
– Any other allowance granted during the period of travel.
– Allowance given to an employee for meeting daily expenses in the event of absence from normal workplace.
– Allowances to be paid for daily commuting. - Â Visually handicapped, deaf, deaf or handicapped employees can claim exemption in transport allowance of Rs. 3,200 per month.
- ALso Read: Advertisement of Cocacola will not be seen for next one month, know the reason behind the decision– No exemption will be available in respect of free food and non-alcoholic beverages through employer-provided vouchers.
- The option was given in the budget
Nirmal Sitharaman, the finance minister of the country, also recommended an alternative rate of income tax to the people in the 2020-21 budget. There is an exemption from tax on annual income up to Rs 2.5 lakh. The same people earn from Rs 2.5 lakh to Rs 5 lakh, they have to pay at the rate of five per cent. People with five to 7.5 lakh rupees get 10 percent, those between 7.5 to 10 lakh rupees will get 15 percent, those earning 10 to 12.5 lakh rupees annually, 20 percent, people earning between 12.5 rupees to 15 lakh rupees, 25 percent and 15 lakh rupees. A provision of 30 percent tax has been made for those earning more than rupees.
