Exemptions us 10

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This discussion clarifies the specific sub-sections of Section 10 of the Income Tax Act applicable to common allowances like professional, car, and telephone. It addresses the issue of companies listing these as 'Other Exemptions' without specifying the exact sub-section. The advice provided indicates that Section 10(14)(i) read with Rule 2BB(1) or Rule 3(7)(ix) is generally applicable, with conditions for exemption based on actual expenses incurred for official duties.

Gaurav

Gaurav (Querist)

04 August 2025 Hello Members,

In form 16 Company has provided exemptions us 10 for different heads like Professional Allowance / Car allowance/ Telephone Allowance. However they have not indicated any sub section u/s 10 but parked the amount as Other Exemptions us 10. Now while filing the ITR it is asking to provide the sub section for all of the allowance for which exemption is claimed.
I am not able to get any exemption like Professional Allowance neither for Car and Telephone allowance. Could you please help provide the sub section for the above.
If there is not such deductions applicable do we have to add these back into the income and pay tax on this amounts as company has shown that as exemption and hence no tax is deducted on these incomes.
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 August 2025 1. Professional Allowance:
Sub-section: Section 10(14)(i) read with Rule 2BB(1).

2. Car Allowance (Conveyance Allowance for Official Duties):
Sub-section: Section 10(14)(i) read with Rule 2BB(1).
Condition for Exemption: This allowance is exempt to the extent of expenses actually incurred for official purposes. Your employer should ideally maintain records of official journeys, and you might need to provide a certificate or logbook of usage.

3. Telephone Allowance / Reimbursement:
Sub-section: This is also covered under Section 10(14)(i) read with Rule 3(7)(ix) of the Income Tax Rules.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 September 2025 Good Luck...

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