The Central Board of Direct Taxes on 5th April 2021 has published the Income tax (15th Amendment), Rules, 2021 which shall be deemed to have come into force from the 1st April, 2021.
Through this amended rule 2B(1A) has been inserted which states that for the assessment year beginning on the 1st April, 2021,wheren an individual avails any cash allowance from his employer in lieu of any travel concession or assistance, the amount exempted under the second proviso to clause (5) of section 10 shall be the amount, not exceeding 36,000 per person, for the individual and the member of his family, or one-third of the specified expenditure, whichever is less, subject to fulfilment of the following conditions, namely:
- Where the individual has exercised an option to avail exemption under section 10(5) (2)
- The payment in respect of the specified expenditure is made by the individual or any member of his family to a registered person during the specified period
- The payment in respect of the specified expenditure is made by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA.
