Claim u/s 80-GG for special allowance. - Income Tax - 1428/CBDT

INSTRUCTION NO. 1428/CBDT Dated: November 18, 1981 The question of taxability or otherwise of the special allowance in lieu of the concessions of free furnished house and limited use of official cars for personal purposes given to Advisers to the Governors of states appointed by the Government of India in states brought under President's rule has been carefully considered. 2. The Board have been advised that such allowances granted in lieu of perquisites would be taxable under the I.T.Act as income under the head 'salaries'. 3. You are therefore requested to bring these instructions to the notice of all your officers. 4. Where the Adviser is paying any rent out of the special allowance granted in lieu of free furnished accomodation, the claim u/s.80-GG might lie for consideration. As sec.80-GG came into force w.e.f. 1-4-76 this situation would arise only for and from the assessment year 1976-77.