Other Points :
(a) Block of 4 years. A block will consist of 4 calendar year, e.g.,
2004—2007 — 1-1-2004—31-12-2007
2008—2011 — 1-1-2008—31-12-2011
2012—2015 — 1-1-2012—31-12-2015
An exemption under this clause shall be allowed only in case of two journeys undertaken by the employee in one block of 4 calendar years.
(b) Carry over clause. In case employee could not avail of the benefit of this exemption in any block of 4 years by not undertaking one or both the journeys, the benefit of this exemption can be claimed in the first calendar year of the next block.
For example, the employee could not undertake any or both the journeys in the block of 2008- 2011, then he can claim the benefit of carry over and undertake the journey and get the exemption in the first calender year of the next block, i.e., in the calender year of 2012. The benefit of exemption of 2 journeys in this block will also be available.
(c) Rail/Air/Bus fare only. The exemption shall be available only and strictly in case of rail, air and bus fare. Any other type of expenditure incurred by the employee is to be ignored.
(d) Exemption only regarding actual expenditure. Exemption shall be allowed only if the journey has been undertaken and actual expenditure incurred on fare shall be eligible for exemption.
(e) Family. ‘Family’ for this purpose shall include legally wedded wife/husband, children and parents, brothers, sisters of the employee if they are wholly and mainly dependent upon the employee.
(f) Not more than 2 children. This exemption shall be available only in case of 2 children of the employee but this restriction does not apply in respect of children born before 1-10-1998 and also in respect of multiple births after one child.
2. Perquisites and Allowances paid by Government to its employees posted outside India [Section 10(7)]
Any perquisite or allowance given by Government to its employees who are working outside India is fully exempt from tax. As such Motor car provided to employee working outside India or house rent allowance or any other such benefit is fully exempted from tax.