Prescribed allowances for the purpose of Section 10(14) of
Income Tax Act
Rule 2BB of Income Tax Rules 1962 defines Prescribed allowances
for the purpose of Section 10(14) of Income Tax Act.
Provisions in Income Tax Rules 1962 related to Rule 2BB is as
under:
Prescribed allowances for the purposes of clause (14) of section
10.
2BB. (1) For the purposes of sub-clause (i) of clause (14) of
section 10, prescribed allowances, by whatever name called,
shall be the following, namely :-
(a) any allowance granted to meet the cost of travel on tour or
on transfer;
(b) any allowance, whether, granted on tour or for the period of
journey in connection with transfer, to meet the ordinary daily
charges incurred by an employee on account of absence from his
normal place of duty;
(c) any allowance granted to meet the expenditure incurred on
conveyance in performance of duties of an office or employment
of profit :
Provided that free conveyance is not provided by the employer;
(d) any allowance granted to meet the expenditure incurred on a
helper where such helper is engaged for the performance of the
duties of an office or employment of profit;
(e) any allowance granted for encouraging the academic, research
and training pursuits in educational and research institutions;
(f) any allowance granted to meet the expenditure incurred on
the purchase or maintenance of uniform for wear during the
performance of the duties of an office or employment of profit.
Explanation : For the purpose of clause (a), "allowance granted
to meet the cost of travel on transfer" includes any sum paid in
connection with transfer, packing and transportation of personal
effects on such transfer.
(2) For the purposes of sub-clause (ii) of clause (14) of
section 10, the prescribed allowances, by whatever name called,
and the extent thereof shall be as per the table in the income
tax rules.
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