The Central Board of Direct taxes vide its notification dated 26th June 2020 has notified the Income-tax (13th Amendment) Rules, 2020 which shall be in force from 1st April 2021 and shall accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years.
Through this amendment, those who opting alternate tax regime under section 115BAC of the Income Tax Act are eligible to claim the exemption for Tour, Travel, and Conveyance Expenses incurred officially.
Therefore under the new income tax regime, employees can claim for tax exemption on conveyance allowance received from their employers, Provided that the exemption provided in the first proviso in respect of free food and non-alcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC.
Click here to read the notification.
