Newspaper and Periodicals

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This discussion clarifies the tax exemption for newspaper and periodical reimbursements. While not explicitly mentioned in Rule 2BB, such expenses can be exempt under Section 10(14) of the Income Tax Act if they are necessary for performing official duties and are reimbursed by the employer. The employer must maintain detailed records and provide a certificate confirming the expenses were incurred solely for official purposes.

Manthan Shete.

Manthan Shete. (Querist)
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26 September 2024 In various online articles it is seen that Newspaper and Periodical reimbursement is exempt under Sec 10(14) of Income Tax Act. However there is no mention of the same in Rule 2BB. Is there any rule/section which exempts Newspaper and periodical allowance/reimbursement.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2024 Depends upon your nature of duty. If it is part of necessity for performing your duty it is allowed as exempt to the extent of actual expenses incurred.

Manthan Shete.

Manthan Shete. (Querist)
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27 September 2024 Thank you sir for the reply but can you please mention clause of any section or Rule where it is written that reimbursement of expenses necessary for performing duty will be exempt, because I am not able to find it.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2024 There may not be reference for the specific item, but if employer gives it as exempt perquisites as per form 16A, it can be considered as exempt, not otherwise.

Manthan Shete.

Manthan Shete. (Querist)
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27 September 2024 Ok Sir.
I found two instances where such expenses could be treated as not a perquisite.
Sec 17(2) "perquisite" includes—
(iv) any sum paid by the employer in respect of any obligation which, but for such payment, would have been payable by the assessee;
This can be interpreted in a manner that any sum paid by employer which was not obligation of employee will not be considered as a perquisite.

Second instance
Rule 3(7)(v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:—
(a) complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
Under this rule, credit card expenses incurred wholly for official purpose will be covered. Hope my understanding is correct.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 September 2024 Yes that is correct as far as they are personal expenses of employee reimbursed by employer.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 October 2024 Good luck ....

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