Deduction of tax at source-Income-tax deduction from salaries-Instructions-Regarding

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..... this department's circular No.195* (F.No. 275/47/76-ITJ) dated 25-3-76 on the above subject. 2. This department has received several references, enquiries, etc., from various private and public establishments seeking clarification on the point of admissibility of standard deduction under section 16(1) in the cases where the employees are in receipt of conveyance allowance. The procedure for d .....

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..... allowances or other perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, to the extent to which such expenses are actually incurred for that purpose. Explanation- For the removal of doubts, it is hereby declared that any allowance grant .....

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..... s not liable to be deducted at source from this allowance. Howerver, at the same time it will have to be ensursed that a certificate in terms of section 10(14) is endorsed on the tax deduction bills, by the disbursing authority. The employees who are in receipt of conveyance allowance would also have to furnish the necessary certificate befor the assessing authorities in support of the fact that .....

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