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The Central Board of Direct Taxes issues the Income-tax (13th Amendment) Rules, 2020 to amend the Income-tax Rules, 1962. These rules apply to employees who exercise the option under sub-section (5) of section 115BAC. Such employees receive tax exemptions only for specific allowances under rule 2BB. Such employees cannot claim the exemption for free food and non-alcoholic beverages provided through paid vouchers under rule 3. The rules come into force on the first day of April, 2021 and apply to the assessment year 2021-22 and subsequent assessment years.
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MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 26th June, 2020 INCOME-TAX
G.S.R. 415(E).—In exercise of the powers conferred by sub-section (2) of section 115BAC read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:‒
(2) They shall come into force from the 1st day of April, 2021 and shall accordingly apply in relation to the assessment year 2021-22 and subsequent assessment years. 2. In the Income-tax Rules, 1962,-
“(3) Notwithstanding anything contained in sub-rule (1) and (2), an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule (1) and at serial no.11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any, specified therein.”;
“Provided further that the exemption provided in the first proviso in respect of free food and non- alcoholic beverage provided by such employer through paid voucher shall not apply to an employee, being an assessee, who has exercised option under sub-section (5) of section 115BAC.”. [Notification No. 38/2020/F. No.370142/15/2020-TPL] GUDRUN NEHAR, Director (Tax Policy and Legislation)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended by the Income-tax (12th Amendment) Rules, 2020, vide notification number G.S.R. 338 (E) dated 29.5.2020
