NFIR published an important order regarding the enhancement of Income Tax exemption limit for Transport Allowance to Railway employees...
DC/JCM Item No 24/2012 - Exemption of Transport Allowance from Purview of Income Tax - Enhancement of Exemption Limit from Rs 800/- to Rs 3,200 plus DA thereon.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. F(X) I-2012/23/4
New Delhi, dated 10.10.2012
The General Secretary,
NFIR,
3, Chelmsford Raod,
New Delhi - 110055
Dear Sir,
Sub : DC/JCM item No.24/2012 : Exemption of Transport Allowance from the purview of Income Tax- Enhancement of exemption limit from Rs. 800/- to Rs. 3200/- plus D.A. thereon.
Ref:- Your letter No.11/58(i) dated 31/08/2012.
The matter has been referred to the Ministry of Finance vide
Board’s letter of even number dated 10.10.2012 to expedite the issue. A
copy of the same is enclosed for information.
Yours faithfully,
sd/-
For Secretar/RaiIway Board
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
No. F(X) I-2012/23/4
New Delhi, dated 10.10.2012
OFFICE MEMORANDUM
Sub: Exemption of Transport Allowance from the purview of Income
Tax- Enhancement of exemption limit from Rs. 800/- to Rs. 3200/- plus
D.A. thereon.
The undersigned is directed to draw the attention of the Ministry of
Finance (Department of Revenue) Central Board of Direct Taxes
towards para 5.2(10) (i) at page 14 of their circular No. 05/2011 dated
16.08.2011 wherein it has been specified that the transport allowance
granted to an employee to meet his expenditure for the purpose of
commuting between the place of his residence and the place of duty is
exempt to the extent of Rs. 800/- per month.
Representations are being received in the Ministry of Railways
from various federations of Railways. The Federations have represented
that Transport Allowance was introduced with the concept of providing
financial support to the Central Government Employees who incur
considerable amounts for their day-to-day travel from their residence to
the work place. This had materialized based on the recommendations of
the V CPC which introduced Transport Allowance in 3 slabs at the rate of
Rs.100. Rs.400 and Rs.800, based on the classification of the
cities/towns under Urban Agglomeration Act. Further, a prerequisite was
introduced to allow this facility for those who stay beyond 1 km radius
from the place of work.
A decision was taken to equate such allowance on par with
normal Travelling/Daily Allowance and these amounts have also been
exempted from computation of annual income and exempted from the purview
of Income Tax vide Income Tax (Eighth Amendment) Rules, 1995 notified
vide F.No.142/9/95-TPL dt. 7-7-1995.
The VI CPC, while reviewing the system of grant of Transport Allowance
has recommended to enhance the same from Rs.100 to Rs.800, Rs.400 to
Rs.1600 and Rs.800 to Rs.3200, for Pay Bands 1 to 4 respectively. The
City Compensatory Allowance was Withdrawn. It was also recommended to
provide the coverage of DA. to Transport Allowance as per increase in
the Consumer Price Index.
Ministry of Finance are therefore requested to include the request
of the Railways for taking due action for enhancing exemption of
Transport Allowance from the purview of Income Tax from Rs. 800/- to Rs.
3200/- plus DA Thereon.
sd/-
(M.Anand Krishna)
Deputy Director, Finance (Exp.)
Railway Board
0 comments:
Post a Comment