Taxability of special allowance: replacement allowances for perquisites treated as salary income; rent-paid deduction may apply. Replacement special allowances paid in lieu of free furnished accommodation and limited personal use of official cars are to be treated as income chargeable under the head 'salaries.' If the recipient pays rent out of that special allowance, a claim for deduction in respect of rent paid may be considered, with the deduction provision applying only from the financial year beginning 1 April 1976 and assessment years thereafter.
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.
Taxability of special allowance: replacement allowances for perquisites treated as salary income; rent-paid deduction may apply.
Replacement special allowances paid in lieu of free furnished accommodation and limited personal use of official cars are to be treated as income chargeable under the head "salaries." If the recipient pays rent out of that special allowance, a claim for deduction in respect of rent paid may be considered, with the deduction provision applying only from the financial year beginning 1 April 1976 and assessment years thereafter.
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