Home Business New Income tax rules to come into force in year 2021-22

New Income tax rules to come into force in year 2021-22

New Income tax rules to come into force in year 2021-22

With New income tax slab you can claim exemption on conveyance, travel, allownace

The income tax department has changes rules related to exemption on conveyance allowed for those opting for new income tax slabs.

The Central Board of Direct Taxes issued a new rules, allowing taxpayers opting for new taxing slabs with for allowance to meet cost of travel and daily expenses, tour allownace for offical purposes, conveyance allowance for meeting conveyance expenditure incurred due to official duties.

Also transport allowance for handicapped employee to commute to and from office is also tax exempted.

Saving on Food Vouchers

The new rules also considers free meal or beverages provided by an employer to employees during office hours through paid voucher to be a private benefit to employees and not an expenditure for official purposes. Therefore, tax exemption of such free meals or beverages has been withdrawn under the new tax scheme.

“This notification also apparently clarifies that except free meals/ beverages/ meal coupons, tax treatment of other perquisites specified under Rule 3, like rent free accommodation, motor cars, free/ concessional education facility, telephone, concessional loan, gifts, club membership, etc. provided by employer will remain an equivalent , both under old scheme also as under new scheme,” Kumar said.

The new rules will inherit force from assessment year 2021-22.

Offering an optional lower rate of tax to individuals willing to forego certain specified deductions or exemptions while computing total income for tax purpose, the finance ministry has introduced two tax slabs.

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