The Live Nagpur
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Crime
  • Entertainment & Lifestyle
  • Featured
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary

The Live Nagpur

  • Home
  • Nagpur City
  • Politics
  • Business
  • Nagpur Education
  • Entertainment
  • Nagpur Sports
  • Health
  • Vidarbha
  • Crime
  • Obituary
Nagpur City

New lower tax regime will allow individuals to claim I-T exemption on conveyance allowance

by TLN Team June 29, 2020
written by TLN Team June 29, 2020
New lower tax regime will allow individuals to claim I-T exemption on conveyance allowance

The government under the new lower tax regime has allowed individuals to claim I-T exemption on conveyance allowance received from employers. The Central Board of Direct Taxes (CBDT) has now amended Income Tax rules to prescribe certain exemptions which can be availed by the employees.

Under the new exemption the cost of travel on tour or on transfer, any allowance, whether, granted on tour or for the period of journey in connection with the transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

It also includes an exemption for any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit, provided that free conveyance is not provided by the employer.

The CBDT has further clarified that while determining the value of perquisites, no exemption will be available in respect of free food and non-alcoholic beverage provided by employers through a paid vouchers.

Further, blind, deaf and dumb or orthopedically handicap employees can also claim ad-hoc exemption of transport allowance of Rs 3,200 per month while computing salaried income.

Offering an optional lower rate of income tax to individuals, Finance Minister Nirmala Sitharaman in her Budget for 2020-21 proposed the new optional tax regime under section 115BAC of I-T Act for individuals willing to forego certain specified deductions or exemptions while computing total income for tax purpose.

Under this, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 percent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 percent, while those between Rs 7.5 and 10 lakh at 15 percent.

Those earning between Rs 10 and 12.5 lakh will be taxed at the rate of 20 percent, and those between Rs 12.5 and Rs 15 lakh, at 25 percent. Income above Rs 15 lakh will be taxed at 30 percent.

The new I-T slabs would be for individuals not availing certain specified deductions or exemptions.

The notification considers free meals/ beverages provided by an employer to employees during office hours to be a personal benefit to employees and not an expenditure for official purposes. Therefore, similar to other allowances withdrawn under new scheme/ slabs, tax exemption of such free meals/ beverages has been withdrawn under the new scheme, Kumar added.

0 comment
FacebookTwitterLinkedin
TLN Team

previous post
Reopening day, salons in city witness cold response from customers
next post
Condition of Tigress, Leopardess at Gorewada Wildlife Rescue Centre Serious

You may also like

Nagpur city restrictions extended till March 14; Saturday,...

March 5, 2021

COVID 19 vaccination now in two shifts

March 5, 2021

Fine Rs 40,000 levied by NMC on 5...

March 5, 2021

With dream and desire, a woman can achieve...

March 5, 2021

Nagpur district reports 1393 fresh COVID-19 cases, tally...

March 5, 2021

City gold buyers rejoice as rate dips to...

March 5, 2021

NHAI’s Beautification Sports Theme amazes people

March 5, 2021

Scientist from Nagpur receives prestigious “Tata Innovation Fellowship...

March 5, 2021

District Collector directs citizens to inform local authorities...

March 5, 2021

Amidst soaring fuel prices, city youth transforms his...

March 5, 2021

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.



Trending News

  • 18 services under RTO moves online

    March 5, 2021
  • COVID-19: Central Govt issues fresh guidelines for restaurants, shopping malls

    March 5, 2021
  • Yog Nritya spreading fitness in city gardens

    March 3, 2021
  • In10 Media Network’s New Hindi General Entertainment Channel ‘Ishara – Zindagi Ka Nazara’

    March 1, 2021
  • Sony launches digital voice recorder PCM-A10 for supreme sound, superior recording

    March 1, 2021

Important Links

  • Politics
  • Crime
  • Business
  • Education
  • Entertainment
  • Sports

Available on Playstore & Coming Soon on Appstore

Search

June 2020
M T W T F S S
« May   Jul »
1234567
891011121314
15161718192021
22232425262728
2930  

Sign-Up Form

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Footer Logo
  • Nagpur City
  • Nagpur Education
  • Nagpur Sports
  • Business
  • Crime
  • Entertainment & Lifestyle
  • Featured
  • Health & Wellness
  • Nation
  • Politics
  • Trending
  • Vidarbha
  • Obituary
  • Privacy Policy
  • Disclaimer
  • Cookie Policy
  • Terms Of Use
  • Advertise with Us
  • Work with us
  • Contact Us

© 2020 - The Live Nagpur . All Rights Reserved.