Deductions under clause (i) as it stood prior to its substitution, and under clauses (iii) to (v) as they stood prior to their omission, by Finance Act, 1974 with effect from 1-4-1975 – Clarifications on certain issues retained in the compendium for reference purposes

Salaried taxpayers owning conveyances and using them for employment –  Deduction therefor for the assessment year 1968-69—

1. A reference is invited to the Press Note issued by the Ministry of Finance (Central Board of Direct Taxes) on 25-5-1968, relating to the allowance of standard deduction for maintenance expenditure and wear and tear in the case of salaried taxpayers owning conveyances and using them for the purpose of their employment.

2. In the absence of the definition of the phrase “used for the purpose of employment” in the Income-tax Act, 1961, a doubt has been expressed as to the meaning of this phrase and the checks which can be applied for the proper verification of the claim, by the disbursing officers.

3. For this purpose, it is hereby clarified that a declaration from the employee that the conveyance is owned by him and is being used by him for the purposes of employment may be considered adequate by the disbursing officer for the purpose of calculation of tax deductible at source under section 192.

Circular : No. 15 [F. No. 40/22/69-IT(A-I)], dated 8-5-1969.

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April 2021