Income-tax (13th Amendment) Rules, 2020

Jun 29, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Central Board of Direct Taxes (CBDT) on June 26, 2020 issued a notification for Income Tax (13th Amendment) Rules, 2020 further amending the Income-Tax Rules, 1962. These rules shall come into force from April 1, 2021 and shall be implemented for the financial year 2021-22.

Following amendments have been made to Income Tax Rules, 1962:

Ø  Under Rule 2BB that explains the exemption of employee in respect of allowances, following clause shall be inserted, “(3) Notwithstanding anything contained in sub-rule (1) and (2), an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule (1) and at serial no.11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any, specified therein”.

Ø  Under rule 3, following proviso shall be inserted, “Provided further 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”.

[Notification No: G.S.R. 415 (E ) ]


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.