composite transfer grant

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  1. tanmmaji

    tanmmaji New Member

    sir i am a central govt employee.i have got rs 55000/-as transfer grant in this financial in my form 16 they did not add this money with my gross salary.As per section 10(14) transfer grant is my question is as they did not add rs 55000/-to my gross salary can i claim exemption of this amount under section that case my income tax amount will be reduced.but on the other hand if i do not claim exemption of this amount as they do not add this with my gross income can IT dept issue me notice?please reply at the earliest
  2. ZED

    ZED Well-Known Member

    The amount should first be added into salary and then exemption should be provided. This is the correct way.

    S10(14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, as may be prescribed, to the extent to which such expenses are actually incurred for that purpose ;

    (ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, as may be prescribed and to the extent as may be prescribed :

    Provided that nothing in sub-clause (ii) shall apply to any allowance in the nature of personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to the place of his posting or residence ;
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