Standard deduction restricted to Rs.1,000 in receipt of conveyance allowance.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nclature of the allowance to 'local travelling expenses', personal allowance', 'vehicle/car allowance', etc. 2. Under the proviso to section 16(i) of I.T.Act, 1961, where the assessee is in receipt of a conveyance allowance from his employer or where any motor-car, motor-cycle, scooter or other moped is provided to the assessee by his employer for use by the assessee otherwise than wholly and exc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....be gone into to determine whether it is in actuality a reimbursement of expenses incurred in the performance of duties or it is merely an allowance camouflaged as reimbursement of actual expenses so as to secure a higher tax benefit. If it is merely a reimbursement of actual expenses incurred in the performance of his duties the standard deduction would not be restricted to Rs.1,000 for this reaso....