Colliery allowance. - Income Tax - 1514/CBDT

INSTRUCTION NO. 1514/CBDT Dated: June 24, 1983 Section(s) Referred: 17 Statute: Income - Tax Act, 1961 A representation has been received from Coal Mines Officers Association of India against income-tax being levied on Colliery Allowance paid to its officers. Colliery allowance paid by Coal India Ltd., is a perquisite and thus taxable. However, having regard to the position that this allowance is meant to defray expenses, inter-alia, for looking after the property of the Company, it has been decided that only the excess over Rs. 100 per month or 50% of the actual allowance whichever is higher would be treated as a taxable perquisite. 2. This may be brought to the notice of all officers working in your charge.