832/CBDT. - Income Tax - 832/CBDT

INSTRUCTION NO. 832/CBDT Dated : May 8, 1975 Section(s) Referred: 57(iii) Statute: Income - Tax Act, 1961 Reference is invited to Board's Instruction F.No. 200/15/70-IT(AI) dated 22-5-1970 on the above subject. 2. It was clarified that the following expenses are allowable as deduction under section 57(iii) of the Income-tax Act, 1961, from the remuneration of the Members of Parliament:- (a) Expenses incurred in maintaining an office in Delhi; (b) Expenses incurred in maintaining an office in his constituency; and (c) Expenses incurred on postage, stationery, conveyance, telephone, stenographic assistance etc., in Delhi or in his constituency. The following expenses were considered as not allowable:- (i) Expenses incurred by a Member of Parliament in contesting the election; (ii) Expenses incurred in nursing the constituency; (iii) Expenses incurred regarding conveyance for attending Parliament from his place or residence in Delhi; and (iv) Expenses incurred in travelling from his place of residence to Delhi and vice versa. 3. In pursuance of the recommendation of the Parliamentary Committee on Subordinate Legislation, the Board had further instructed that a minimum deduction of Rs. 100 per month may be allowed under section 57 (iii) of the Income-tax Act, 1961, wherever any such claim is made Claims upto this amount were to be allowed as deduction from the remuneration of the Members of Parliament without any enquiry. In cases, however, where expenditure of more than Rs. 100 per month is claimed, a broad check of the expenditure actually incurred shall be made. 4. Instances have come to notice where expenditure on nursing of constituencies and contesting of elections have been allowed in contravencies of the above instructions of the Board. The Board reiterate that the above instructions of the Board. The Board reiterate that the above instructions must be strictly followed by the Income-tax Officers in all the pending assessments of Members of Parliament. Inspecting Asst. Commissioners may be directed to ensure strict compliance of these instructions. 5. The directions contained in the Boards Instruction F. No. 200/15/70-IT(AI) dated 22-5-1970 will apply mutatis mutandis to the assessment of the Members of the State Legislatures as well.