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
Maintenance of conveyance – Allowance of deduction therefor when vehicle is in repair – I am directed to invite a reference to the Board’s Circular No. 15 [F. No. 40/22/69-IT(A-I)], dated 8-5-1969 and to say that in the manner of standard deduction from “salaries” under section 16(iv), a question has arisen, viz., whether an assessee who owns a conveyance and uses it for the purposes of employment is entitled to the standard deduction for the period during which it was temporarily out of use because it was under repairs. Since during the temporary non-user of the conveyance and the assessee would have been spending on substitute conveyance and further the repair charges are not separately allowable, the Board desire that the assessee may be allowed the prescribed monthly deduction for the period of repairs. The certificate about continuous use of the vehicle for purposes of employment should cover the repairs period also.
Circular : No. 97 [F. No. 200/29/72-IT(A-I)], dated 14-12-1972.