Dear Members, Please clarify me, Is uniform allowance will have exemption under under sec 10 apart from standard deduction of Rs.40,000/-?. And how about LTA exemption.
Sarthak Gupta
(28 Points)
Replied 08 April 2019
Standard deduction of Rs. 40,000/- (now Rs. 50,000/-) includes only transport allowance and medical reimbursements. Uniform Allowance and LTA are not covered under this deduction.
Uniform allowance can be claimed if it is for office purpose. Kindly note that Gujarat HC in its case of ONGC vs ACIT (2016) has ruled that normal dress code worn by employees is not uniform for purpose of exemption as uniform allowance under section 10(14)(i).
LTA deduction can be claimed for 2 times in a block of 4 years. Current block period is 2018-21.
Thanks
CAclubindia
