Conditions for the purposes of Section 10(5) of Income Tax
Act
Rule 2B of Income Tax Rules 1962 defines Conditions for the
purposes of Section 10(5) of Income Tax Act in respect of value
of travel concession or allowance received or due to employee
from employer.
Provisions in Income Tax Rules 1962 related to Rule 2B is as
under:
Conditions for the purpose of section 10(5).
2B. (1) The amount exempted under clause (5) of section 10 in
respect of the value of travel concession or assistance received
by or due to the individual from his employer or former employer
for himself and his family, in connection with his proceeding,-
(a) on leave to any place in India;
(b) to any place in India after retirement from service or after
the termination of his service,
shall be the amount actually incurred on the performance of such
travel subject to the following conditions, namely :-
7(i) where the journey is performed on or after the 1st day of
October, 1997, by air, an amount not exceeding the air economy
fare of the national carrier by the shortest route to the place
of destination;
(ii) where places of origin of journey and destination are
connected by rail and the journey is performed on or after the
1st day of October, 1997, by any mode of transport other than by
air, an amount not exceeding the air-conditioned first class
rail fare by the shortest route to the place of destination; and
(iii) where the places of origin of journey and destination or
part thereof are not connected by rail and the journey is
performed on or after the 1st day of October, 1997, between such
places, the amount eligible for exemption shall be :-
(A) where a recognised public transport system exists, an amount
not exceeding the 1st class or deluxe class fare, as the case
may be, on such transport by the shortest route to the place of
destination; and
(B) where no recognised public transport system exists, an
amount equivalent to the air-conditioned first class rail fare,
for the distance of the journey by the shortest route, as if the
journey had been performed by rail.
(2) The exemption referred to in sub-rule (1) shall be available
to an individual in respect of two journeys performed in a block
of four calendar years commencing from the calendar year 1986 :
Provided that nothing contained in this sub-rule shall apply to
the benefit already availed of by the assessee in respect of any
number of journeys performed before the 1st day of April, 1989
except to the extent that the journey or journeys so performed
shall be taken into account for computing the limit of two
journeys specified in this sub-rule.
(3) Where such travel concession or assistance is not availed of
by the individual during any such block of four calendar years,
an amount in respect of the value of the travel concession or
assistance, if any, first availed of by the individual during
first calendar year of the immediately succeeding block of four
calendar years shall be eligible for exemption.
Explanation : The amount in respect of the value of the travel
concession or assistance referred to in this sub-rule shall not
be taken into account in deter-mining the eligibility of the
amount in respect of the value of the travel con-cession or
assistance in relation to the number of journeys under sub-rule
(2).]
(4) The exemption referred to in sub-rule (1) shall not be
available to more than two surviving children of an individual
after 1st October, 1998 :
Provided that this sub-rule shall not apply in respect of
children born before 1st October, 1998, and also in case of
multiple births after one child.
Rule 1 of Income Tax Rule 1962 - Short Title and Commencement
Rule 2 of Income Tax Rule 1962 - Definitions of Income Tax Rules
Rule 2A Limits for the Purposes of Salary income Income Tax Rules 1962
Rule 3 Valuation of Perquisites to employees and Tax on Perquisites: Rule 3 of Income Tax Rules 1962
Rule 4 Unrealized rent of Income from House Property: Rule 4 of Income Tax Rules 1962
Rule 5AA Prescribed authority for Investment Allowance: Rule 5AA of Income Tax Rules 1962