motor cycle allowance

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
03 September 2010 Sir
I am a employee in government office .I recived 4200.00 motor cycle allowance per year include my salary . This allowance are exempt income tax act u\s 10(14)(i) but the I.T.O. are levy tax this allowance .He asked it is a taxable allowance i confuse please help me and give me answer that it is a taxable or exempt .

03 September 2010 U/s 10(14)(i) of the income tax act states that , "any such allowance 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"

Pls understand ,the provision says "to that the extent to which such expenses are actually incurred for that purpose" which results the onus to prove the genuineness is on the assessee. Hence u have to prove to the ITO that the allowances is to meet for performance of duties.(If u claim U/s10(14)(i))


03 September 2010 Whatever be the name of this allowance. The nature of it suggest that it is a conveyance allowance & that to the extent Rs. 800/- per month i.e upto Rs. 9600/- is exempt.

So the exemption can be claimed.


03 September 2010 That is Transport allowance, the allowance is motor allowance as per the pay slip. U have to see the pay slip

03 September 2010 There is no spefic exemption for Motor cycle allowance.

Sec.10(14) also giving exemption for allwance which meet the offical duty

Allowance provided for transport for journey between residence to office is exempted Rs.800 p.m

Conveyance allowance given for performance of offical duty exempted fully, if personal nature fully taxable

So please see the nature of allowance and justify the ITO



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries