The Central Board of Direct taxes makes Income tax (15th Amendment), Rules, 2021 to amend the Income–tax Rules,1962.
In the Income–tax Rules, 1962, in rule 2B relating to Conditions for the purpose of section 10(5), the following sub–rules shall be inserted,
“(1A) For the assessment year beginning on the 1st day of April, 2021, where the individual referred to in sub–rule (1) 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 thirty–six thousand rupees 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:–
(i) the individual has exercised an option to avail exemption under the second proviso of clause (5) of section 10, in lieu of the exemption under clause (5) of section 10 in respect of one unutilised journey during the block of four calendar years commencing from the calendar year 2018;
(ii) 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;
(iii) 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; and
(iv) the individual obtains a tax invoice in respect of specified expenditure from the registered person referred in clause (ii).