"Allowances To Meet Expenditure On A Helper, Uniform, Academic Research And Other Professional Pursuits Are Completely Tax-Exempt"


As per Rule 2BB the following allowances, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of offices of employment or profit, for the purposes of Section 10 (14) (i) would be considered as completely exempt from tax, namely:

(a)      Any allowance (by whatever name called) granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of duties of an office of employment or profit;

(b)      Any allowance (by whatever name called) granted for encouraging academic, research and other professional pursuits in educational and research institution, and

(c)      Any allowance (by whatever name called) and granted to meet the expenditure incurred on the purchase or maintenance of uniform for use during the performance of the duties of an office of employment or profit. The above allowances continue to be exempted even after the introduction of the concept of “cost to the company” and also they are exempt even after the publication of Notification No. 940(E) dated 25.9.2001.

As per CBDT Circular No. 15 dated 12-12-2001 the perquisite value of periodicals and journals provided to the employee for discharge of his work would be nil.

Special Compensatory Allowances Exempted From Tax Upto some Limit
Conveyance And Transport Allowances Are fully Exempted From Tax
Allowances for A Helper,Uniform, Academic Research are Tax-Exempt
Free Medical Facilities Not A Perquisite in Certain Circumstances
Exemption Of LTA Or LTC (Leave Travel Assistance Or Concession)
Excess Contribution By Employer To a Employees RPF A/c is Taxable
No Benefit For Free Gas, Free Watchman And Gardener From Employer
Sweeper,Gardener,Watchman,Personal Attendant Benefit To Employee
Gas And Electric Energy Or Water Benefit To The Employee
Free Or Concessional Education Facilities Benefit To The Employee
Tax Planning For Rent-Free Residential Accommodation
Personal Or Private Journey Free Of Cost Benefit To The Employee
Interest-Free Loan Benefit To The Employee
Holiday Travelling, Touring, Etc. Benefit To The Employee
Other Fringe Benefits To The Employee by Employer
Employer Can Pay Tax On Perquisites On Behalf Of The Employees
Employees Stock Options by Employer
Exemption Of House Rent Allowance Through Proper Tax Planning
How An Employee Can Get Tax-Free Car For Personal Use
Perquisite Valuation Of Car For Office And Personal Use
Deduction For House Rent U/S 80GG
How Company Directors Can Save Money By Proper Tax Planning
Travelling And Daily Allowances fully Exempted From Income Tax
Children’s Educational And Hostel Allowances Exempt From Tax ..
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