Cumulative professional development allowance

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This query is : Resolved

sunder r (Querist)

21 December 2011 Government of India (MHRD) started making payment of a new allowance viz. Cumulative Professional Development Allowance to the faculties of centrally funded technical institution based on Goverdhan Committee report w.e.f August 2009. The allowance is meant for reimbursement to faculties in respect of their expenditure on National/International travel (not as official visit) and purchase of books and for reimbursement of contingent expenditure (maximum1.00 lakh per year). This allowance is of general nature and no condition, as per MHRD notification, is attached to it. Faculties at their discretion (with the approval of the head of institution) can attend national / international conference, purchase books and incur any contingent expenses and get the expenses refunded subject to the maximum of Rs. 1.00 lakh.
My question to the experts is this:
Whether the allowance is exempted from payment of Income tax. If so, under what rule / provision?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

21 December 2011 This is of the general category of allowances and benefit can be claimed to the extent of expenditure incurred in that connection. In my view, any surplus, if remains unspent,or unutilised, is treated as taxable income.

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