CBDT notifies Amendment in Rules related to allowances for the purposes of clause (14) of section 10 for those who opted Lower Tax Rate Option vide Notification No. 38/2020-Income Tax dated 26th June 2020.
An employee, being an assessee, who has exercised Lower Income Tax Rate option under sub-section (5) of section 115BAC shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule (1) and at serial no. 11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any, specified therein
Sub-clauses (a) to (c) of sub-rule (1) of Rule 2BB are as follows :-
| (a) | any allowance granted to meet the cost of travel on tour or on transfer; |
| (b) | any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty; |
| (c) |
any allowance granted to meet the expenditure incurred on con-veyance in performance of duties of an office or employment of profit Provided that free conveyance is not provided by the employer; |
Serial no. 11 of the Table below sub-rule (2) of Rule 2BB :-
| Sl. No. | Name of allowance | Place at which allowance is exempt | Extent to which allowance is exempt |
| 11. | Transport allowance granted to an employee, who is blind (or deaf and dumb) or orthopaedically handicapped with disability of lower extremities, to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty | Whole of India | Rs.3200 per month |
The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof in either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
Provided further that the exemption provided in the first proviso in respect of free food and nonalcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC.
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