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TMI BlogDeductions under clause (i) as it stood prior to its substitution, and under clauses (iii) to (v) as they stood prior to their omission, by Finance Act, 1974 with effect from 1-4-1975 - Clarifications on certain issues retained in the compendium for reference purposesX X X X Extracts X X X X X X X X Extracts X X X X ..... ir - I am directed to invite a reference to the Boards Circular No. 15 [F. No. 40/22/69-IT(A-I)], dated 8-5-1969 and to say that in the manner of standard deduction from salaries under section 16(iv), a question has arisen, viz., whether an assessee who owns a conveyance and uses it for the purposes of employment is entitled to the standard deduction for the period during which it was temporarily out of use because it was under repairs. Since during the temporary non-user of the conveyance and the assessee would have been spending on substitute conveyance and further the repair charges are not separately allowable, the Board desire that the assessee may be allowed the prescribed monthly deduction for the period of repairs. The certificate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Reference is invited to this Ministrys Circular letter of even number dated March 26, 1968 [printed under section 192] regarding the procedure to be followed by disbursing officers in deducting tax at source from salaries during the financial year 1968-69. 2. In paragraph 4 in item (ix) of the above letter, it has been stated that in calculating the tax deductible at source from salaries, the salary income is to be reduced by the appropriate amount of standard deduction for maintenance expenditure and wear and tear of motor cars and other conveyances owned by the employee and used by him for the purposes of his employment. A question has arisen whether this standard deduction is allowable in a case where the employee claims to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed as to the meaning of this phrase and the checks which can be applied for the proper verification of the claim, by the disbursing officers. 3. For this purpose, it is hereby clarified that a declaration from the employee that the conveyance is owned by him and is being used by him for the purposes of employment may be considered adequate by the disbursing officer for the purpose of calculation of tax deductible at source under section 192. Circular : No. 15 [F. No. 40/22/69-IT(A-I)], dated 8-5-1969. clarification 5 Purchase of books and other publications for the employment purposes/Main- tenance and use of own conveyance for employment purposes 1. ** ** ** 2. Books - The intention is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. For making a reasonable estimate of the amount to be allowed, the Income-tax Officer will require the following information : a. the total expenditure incurred in running the conveyance during the relevant year; b. the date of purchase, the original cost and the period for which it was in the employees use during the year; and c. the status of the employee and the nature of duties of the employee necessitating the use of the conveyance and indicating the extent of such use for purposes of employment. Where adequate details in respect of item (a) are not available, the employee should furnish a certificate to the effect that the total cost of running and maintaining the car was not less than a specified amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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