Final notification of the Income-tax (15th Amendment) Rules, 2021 – CBDT
View PdfFinal notification of the Income-tax (15th Amendment) Rules, 2021 – CBDT
- This notification has come into force on 05.05.2021.
- Explanation 1- For the purpose of this sub-rule,-
- Explanation 2
- Explanation 3
“(1A) For the assessment year beginning on the 1st day of April, 2021, where the individual referred to in sub-rule (1) avails any cash allowance from his employer in lieu of any travel concession or assistance, the amount exempted under the second proviso to clause (5) of section 10 shall be the amount, not exceeding thirty-six thousand rupees per person, for the individual and the member of his family, or one-third of the specified expenditure, whichever is less, subject to fulfilment of the following conditions, namely:
(i) the individual has exercised an option to avail exemption under the second proviso of clause (5) of section 10, in lieu of the exemption under clause (5) of section 10 in respect of one unutilised journey during the block of four calendar years commencing from the calendar year 2018;
(ii) The payment in respect of the specified expenditure is made by the individual or any member of his family to a registered person during the specified period;
(iii) the payment in respect of the specified expenditure is made by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA; and
(iv) The individual obtains a tax invoice in respect of specified expenditure from the registered person referred in Clause (ii).
(i) „tax invoice‟ means an invoice issued by the registered person under section 31 of the Central Goods and Services Tax Act, 2017 (No. 12 of 2017);
(ii) „registered person‟ shall have the meaning assigned to it in clause (94) of section 2 of the Central Goods and Services Tax Act, 2017 (No. 12 of 2017);
(iii) „specified expenditure‟ means expenditure incurred by an individual or a member of his family during specified period on goods or services, which are liable to tax at an aggregate rate of twelve per cent. or above under various Goods and Services Tax (GST) laws and goods are purchased or services procured from GST registered vendors or service providers;
(iv) „Specified period‟ means the period commencing from the 12th day of October, 2020 and ending on the 31stday of March, 2021.
(1B) where an exemption under the second proviso to clause (5) of section 10 is claimed and allowed, sub-rule
For the removal of doubt, it is hereby clarified that if the amount received by or due to an individual, as per the terms of his employment, from his employer in relation to himself and member of his family, in connection with the specified expenditure is in excess of the thirty six thousand rupees per person, for the individual and the member of his family, the exemption under this sub-rule would be restricted to thirty-six thousand rupees per person, for the individual and the member of his family, or one-third of the specified expenditure, whichever is less.
It is hereby clarified that the clarification issued by the Department of Expenditure, Ministry of Finance, vide OM F. No 12(2)/2020-EII (A) Dated 12th October, 2020 and any subsequent
Clarification
(2) Shall have effect as if for the words „two journeys‟ , the words „one journey‟ has been substituted.”.
