Amended provisions of Sec.10(14).

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.... from their employer. The provision has been substantially recast by the Direct Tax Laws (amendment) Act, 1987. The amended provisions have come into effect from 1.4.1989. 2. Under Section 10(14)(i), any special allowance or benefit, which is not separately taxable as a perquisite u/s.17(2), and which is notified by the Central Government in this regard is entitled to tax exemption. The exempti....

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....ear in the performance of duties. 4. Under Section 10(14)(ii), any allowance to meet the personal expenditure of an employee at a place where he works or resides or to compensate him for the increased cost of living is exempt. The exemption must be formally notified and it is available accordingly to the extent specified in the notification. 5. One of the allowances notified u/s.10(14)(ii) i....

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....n expended for the purpose for which they have been given and, in case the evidence is required to be produced, such evidence should be furnished to the assessing authorities. The employers, in turn, will have to indicate in the salary certificate full details of all such special allowances which are paid to the employees, whether claimed to be exempt or not. 7. You may apprise employers of the....