16 May 2013
Dear Experts, Please clarify the Academic allowance paid to employee is a exempted allowance? the academic allowance should used for research and training of the employee?
Guest
Guest
(Expert)
16 May 2013
As per Rule 2BB of income tax act, academic allowance is exempted if following is satisfied.
Academic allowance should be used by the employee for his academic research and training purposes.
If he utilized the in above manner.
Allowance received by employee Less: Expenditure incurred for academic official performance (Expenditure deducted can not exceed allowance recieved)