Exemption for Books and Periodicals
This query is : Resolved
Vivek Vaish
(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.
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.
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.
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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