Tax exemption for employee allowances limited to actual expenses and notified ceilings, requiring employer disclosure and employee proof. Exemption for employee allowances applies only to notified allowances not chargeable as perquisites and only to the extent of expenses actually incurred in performance of duties. Notified allowances relevant to airline pilots and crew include travel on tour or transfer, daily subsistence during tours or transfer journeys, conveyance for duties, and uniform purchase or maintenance. A transport-system personal expenditure allowance is available subject to the extent and limit specified in notification. Employees claiming exemption must affirm expenditure and produce evidence if required; employers must detail allowances in salary certificates to ensure correct tax withholding and assessing officers must allow exemptions strictly under law.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax exemption for employee allowances limited to actual expenses and notified ceilings, requiring employer disclosure and employee proof.
Exemption for employee allowances applies only to notified allowances not chargeable as perquisites and only to the extent of expenses actually incurred in performance of duties. Notified allowances relevant to airline pilots and crew include travel on tour or transfer, daily subsistence during tours or transfer journeys, conveyance for duties, and uniform purchase or maintenance. A transport-system personal expenditure allowance is available subject to the extent and limit specified in notification. Employees claiming exemption must affirm expenditure and produce evidence if required; employers must detail allowances in salary certificates to ensure correct tax withholding and assessing officers must allow exemptions strictly under law.
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