Allowability of Exemption under Section 10(14)(i) under the New Tax Regime

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....llowability of Exemption under Section 10(14)(i) under the New Tax Regime<br> Query (Issue) Started By: - vaibhav agrawal Dated:- 11-7-2026 Last Reply Date:- 12-7-2026 Income Tax<br>Got 1 Reply<br>Income Tax<br>Is the exemption under Section 10(14)(i) of the Income-tax Act, 1961 allowable under the new tax regime? Reply By Sanjeev Agarwal: The Reply: Exemption under Section 10(14)(i) under th....

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....e New Tax Regime No. Under Section 115BAC (new tax regime), the exemption under Section 10(14)(i) is generally not available. However, an exception is provided for certain prescribed allowances notified by the Central Government. The conditions of Section 115BAC specifically restrict the claim of exemption under Section 10(14), except for such prescribed allowances. Allowances that continue ....

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....to be exempt under the new regime include: • Travelling allowance for tour or transfer. • Daily allowance during official tour. • Conveyance allowance incurred wholly in the performance of official duties (where free conveyance is not provided). • Allowance to meet ordinary daily charges while away from the normal place of duty. • Tr....

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....ansport allowance granted to a divyang (disabled) employee. These allowances continue because they are intended to reimburse expenses incurred in the discharge of official duties rather than provide a personal tax benefit. Allowances not exempt under the new regime include: • House Rent Allowance (HRA). • Children Education Allowance. • Hostel Expenditu....

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....re Allowance. • Most special, academic, helper, research, and similar allowances unless specifically covered by the prescribed exceptions. Practical implication: For employees opting for the new tax regime, employers should compute salary income without allowing exemption for most allowances under Section 10(14)(i), except the prescribed duty-related allowances. The standard ded....

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....uction and deductions specifically permitted under Section 115BAC, such as employer&#39;s contribution to NPS under Section 80CCD(2), continue to be available.<br> Discussion Forum - Knowledge Sharing ....