Exemption u/s 10(14) in respect of additional conveyance allowance. - Income Tax - 1738/CBDT

INSTRUCTION NO. 1738/CBDT Dated: November 28, 1986 On a representation from the Life Insurance Corporation of India, the Board considered the question of taxability of the additional conveyance allowance received by the Development Officers of the Corporation with reference to Sec. 10(14) of the Income-tax Act. 1961. It was stated by the Life Insurance Corporation that it has now devised a suitable internal system which will enable it to satisfy itself regarding the expenditure incurred by each individual Development officer having regard to the details of actual performance, type of vehicle used, area of operation etc. It has further been stated that the Life Insurance Corporation would now be in a position to append a certificate in the Salary certificate to the effect that the additional conveyance allowance granted to the concerned Development Officer was granted specifically to the expence wholly, necessarily and exclusively for the performance of the duties of the office and had been actually incurred for that purpose. 2. It has been decided that the exemption u/s 10(14) of the Income-tax Act. 1961 in respect of the said additional conveyance allowance should be allowed in case which the Life Insurance Corporation appends a certificate, as stated above in the salary certificate. 3. These instructions may please be brought to the notice of all the officers working in your charge.