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Exemption for Books and Periodicals

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(Querist)
22 January 2020 Hi Experts.

An employee is getting a monthly allowance for Book & Periodicals of Rs. 1,000/- so yearly Rs. 12,000/-

In the month of January he purchases Books related to business of the company for an amount of Rs. 5,000/- and submit the bills to the Company.

How much exemption he will get Rs. 1,000/- (January allowance) or Rs. 5,000/- (Actual Expenses during the year)

I.e. the exemption to be calculated monthly for each month or can be considered yearly basis.
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Akash Monwani

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Akash Monwani (Expert)
23 January 2020 Exemption for Book & Periodical Allowances will be calculated on Annual Basis. The Exemption allowed is lower of Allowances Received or Amount of Expenses Incurred .

In above mentioned case the yearly allowance Received is Rs 12,000 and actual Expenditure incurred is Rs 5000 Hence Rs 5,000 will be exempt and Rs 7,000 will be taxable.
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