India - Income Tax Act 2010 - Saarc

1.59 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(14A)(a) the residential accommodation occupied by the assessee is ownedby him ; or(b) the assessee has not actually incurred expenditure on payment ofrent (by whatever name called) in respect of the residentialaccommodation occupied by him ;]99[(14) (i) any such special allowance or benefit, not being in the nature of aperquisite within the meaning of clause (2) of section 17, specificallygranted to meet expenses wholly, necessarily and exclusivelyincurred 1 in the performance of the duties of an office or employmentof profit 2 , 3 [as may be prescribed], to the extent to which suchexpenses are actually incurred for that purpose ;(14A) 6 [***](ii) any such allowance granted to the assessee either to meet hispersonal expenses at the place where the duties of his office oremployment of profit 2 are ordinarily performed by him or at the placewhere he ordinarily resides, or to compensate him for the increasedcost of living, 4 [as may be prescribed and to the extent as may beprescribed] :]5[Provided that nothing in sub-clause (ii) shall apply to any allowancein the nature of personal allowance granted to the assessee toremunerate or compensate him for performing duties of a specialnature relating to his office or employment unless such allowance isrelated to the place of his posting or residence ;]99. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to itssubstitution, clause (14) was amended by the Finance Act, 1975, w.r.e.f. 1-4-1962.1. For the meaning of the terms/expressions “incurred” and “office or employment of profit”,see Taxmann’s Direct Taxes Manual, Vol. 3.2. For the meaning of the expression “office or employment of profit”, see Taxmann’s DirectTaxes Manual, Vol. 3.3. Substituted for “as the Central Government may, by notification in the Official Gazette,specify” by the Finance Act, 1995, w.e.f. 1-7-1995.For prescribed allowances, see rule 2BB(1).4. Substituted for “as the Central Government may, by notification in the Official Gazette,specify, to the extent specified in the notification” by the Finance Act, 1995, w.e.f. 1-7-1995.For prescribed allowances, see rule 2BB(2).5. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989.6. Omitted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its omission, clause (14A), asinserted by the Finance Act, 1989, w.e.f. 1-4-1989, read as under :‘(14A) any income received by a public financial institution as exchange risk premiumfrom any person borrowing foreign currency from such institution, provided theamount of such premium is credited by such institution to a fund specified underclause (23E).Explanation.—For the purposes of this clause,—(i) the expression “public financial institution” shall have the meaning assignedto it in section 4A of the Companies Act, 1956 (1 of 1956) ;(ii) the expression “exchange risk premium” means a premium paid by a personborrowing foreign currency from a public financial institution to cover therisk which may be borne by such institution on account of fluctuations inexchange rate of foreign currencies borrowed by such institution ;’