Income Tax – Hike in daily Allowance for Members of National Committee
Section 35AC of the Income tax Act reads as –
Expenditure on eligible projects or schemes.
35AC . (1) Where an assessee incurs any expenditure by way of payment of any sum to a public sector company or a local authority or to an association or institution approved by the National Committee for carrying out any eligible project or scheme, the assessee shall, subject to the provisions of this section, be allowed a deduction of the amount of such expenditure incurred during the previous year :
As per Rule 11 I of the Income tax Rules, the functions of the National Committee shall be—
(i) to approve associations and institutions for the purpose of carrying out any eligible project or scheme; and
(ii) to recommend to the Central Government projects and schemes of any company including a public sector company, a local authority or an approved association or institution, for being notified as eligible projects or schemes for the purposes of section 35AC .
As per Rule 11N of the IT Rules, the Chairman and Members of the Committee were entitled for
1. A Sitting fee of Rs. 250 per day for attending meetings.
2. Reimbursement of travel expenses including taxi fare to the meeting place.
3. Daily Allowance of Rs. 265 if they stay in a hotel and Rs. 106 if they don't stay in a hotel.
Now these Rules are amended to
1. Increase the sitting fee to Rs. 3000 from Rs. 250
2. To allow reimbursement of even air-conditioned taxi fare, and
3. No daily Allowance but the reimburse the rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas , and reimbursement of food allowance of Rs. 500 per day.
Small relief to a Great Committee.
Income Tax Notification No. 65 /2009/ F.No.- SO(TPL) : Dated 2nd September, 2009.