India - Income Tax Act 2010 - Saarc

1.43 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(5)per head) having regard to the travel concession or assistance grantedto the employees of the Central Government :(Contd. from p. 1.42)u The exemption is admissible on the value of any travel concession or assistance receivedby or due to an assessee from his employer or former employer, as the case may be, forhimself and his family, in connection with his proceeding (i) on leave to any place in India,or (ii) to any place in India after the retirement from service, or (iii) to any place in Indiaafter the termination of his service.u The exemption is admissible in respect of actual expenditure incurred for journeysperformed, not only by the assessee but also by his family.For this purpose, ‘family’ means (i) the spouse and children of the assessee, and (ii) theparents, brothers and sisters of the assessee provided that they are wholly or mainlydependent on the assessee. With effect from 1-10-1997, the Central Civil Service LeaveTravel Concession Rules have been amended in this respect.u The exemption can be availed only in respect of two journeys performed in a block offour calendar years. For this purpose, the first four-year block commenced with thecalendar year 1986. Thus, the four-year blocks will be 1986-89, 1990-93, 1994-97, 1998-2001, 2002-05, 2006-09 and so on.u If an assessee has not availed travel concession or assistance during any of the specifiedfour-year block periods on one of the two permitted occasions, or on both occasions,exemption can be claimed provided he avails the concession or assistance in the calendaryear immediately following that block. This is popularly known as the ‘carry-over’concession. In such cases, the exemption so availed will not be counted for purposes ofregulating the future exemptions allowable for the succeeding block of four years.Quantum of exemption.—The basic rule is that the quantum of exemption will be limitedto the actual expenses incurred on the journey. This pre-supposes that, without performingany journey and incurring expenses thereon, no exemption can be claimed.In addition to the above general limitation, the quantum of exemption will also be subjectto the following maximum limits, depending upon the mode of transport used or available:■■■For journeys performed by AirJOURNEYS PERFORMED ON OR AFTER 1-10-1997Where place of origin of journeyand destination are connected byrail and the journey is performed byany mode of transport other than byairWhere place of origin of journeyand destination or part thereof arenot connected by rail■■■Air economy fare of the national carrier(Indian Airlines or Air India) by the shortestroute to the place of destination.Air-conditioned first class rail fare by theshortest route to the place of destination.(i) Where a recognised public transportsystem exists, the first class or deluxe classfare on such transport by the shortestroute to the place of destination.(ii) Where no recognised public transportsystem exists, the air-conditioned first classrail fare, for the distance of the journey bythe shortest route, as if the journey hasbeen performed by rail.Restricted concession for children.—Under sub-rule (4) of rule 2B, inserted with effectfrom 1-10-1997, exemption on travel concession will not be admissible to more than two(Contd. on p. 1.44)