Rule 279 — Limits for the purposes of Schedule III [Table: Sl.No. 11] to the Act

Parent Act Section(s): See cross-references below

Full Text

Limits for the purposes of Schedule III [Table: Sl.No. 11] to the Act.– (1) The amount, which is not to be included in the total income of an assessee in respect of the special allowance referred to in Schedule III [Table: Sl.No. 11] to the Act, shall be the least of the following: (a) the actual amount of such allowance received by the assessee in respect of the relevant period; or (b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee for the relevant period; or (c) in case of an assessee employed in the location mentioned in column B of the following Table, an amount equal to such percentage of salary, mentioned in column C thereof, due to the assessee in respect of the relevant period:— Table Sl. Location of residential accommodation Percentage of No. salary A B C
Mumbai, Kolkata, Delhi, Chennai, 50% Hyderabad, Pune, Ahmedabad and Bengaluru.
Any other place. 40% (2) In this rule,– (a) “relevant period” means the period during which the said accommodation was occupied by the assessee during the tax year; and (b) “salary‖ includes dearness allowance, if provided for under the terms of employment, but excludes all other allowances and perquisites.

[To be populated — interpretive notes, circular references, case law pointers]