Notification No. 277/2004-Income Tax Dated 3/11/2004

Notification No. 277 of 2004, dt. 3rd Nov., 2004

Income Tax Notification No: 277 (03-Nov-04) Income-tax (Thirteenth Amendment) Rules, 2004

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), read with sub-clause (vi) of clause (2) of section 17 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:-

1. (1) These rules may be called the Income-tax (Thirteenth Amendment) Rules, 2004.

(2) They shall come into force from the 1st day of October, 2004.

2. In the Income-tax Rules, 1962, in rule 3,-

(a) in sub-rule (1) for the first proviso, the following proviso shall be substituted, namely:-

“Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site which,-

(i) being of a temporary nature and having plinth area not exceeding 800 Square feet, is located not less than eight kilometers away from the local limits of any municipality or a cantonment board; or

(ii) is located in a remote area:”;

(b) in sub-rule (7), in clause (iii),-

(i) for the words “value of free meals”, the words “value of free food and non-alcoholic beverages” shall be substituted;

(ii) for the proviso, the following proviso shall be substituted, namely:-

“Provided that nothing contained in this sub-rule shall apply to free food and non-alcoholic beverages provided by the employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof in either case does not exceed Rs.50/- per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an offshore installation.”.

File No.142/7/2004-TPL