CBDT allows IT exemption on conveyance allowance under new tax regime

by Nidhi Bhati

The Central Board of Direct Taxes (CBDT) has notified amendments in Income Tax (IT) rules, which allow salaried employees to claim a set of exemptions if they apply for the lower personal income tax regime for income earned during 2020-21. The notification provides for exemptions to be availed by employees to meet cost of travel, daily expenses on transfer, tour allowance for travel for official purposes to meet the travel and daily expenses and conveyance allowance for meeting conveyance expenditure incurred in course of performing official duties. It also provides for exemption on transport allowance to physically challenged employees. The exemption limit is set at Rs.3,200 per month. However, the CBDT has clarified that while determining value of perquisites, no exemption shall be available in respect of free food and non-alcoholic beverages provided by employer via paid vouchers.

References
1. https://economictimes.indiatimes.com/news/economy/policy/employees-allowed-to-claim-i-t-exemption-on-conveyance-allowance-under-new-tax-regime-cbdt/articleshow/76666953.cms
2. https://www.newindianexpress.com/business/2020/jun/29/claim-i-t-exemption-on-conveyance-allowance-2162796.html
CMIE STATISTICS
Unemployment Rate
Per cent
9.1 -0.1
Consumer Sentiments Index
Base September-December 2015
42.7 +0.4
Consumer Expectations Index
Base September-December 2015
44.6 +0.7
Current Economic Conditions Index
Base September-December 2015
39.8 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Sep 19 Dec 19 Mar 20 Jun 20
New projects 3.12 5.15 3.39 0.57
Completed projects 0.85 1.65 1.70 0.17
Stalled projects 0.41 0.61 1.28 0.11
Revived projects 0.43 0.83 0.42 0.53
Implementation stalled projects 0.90 0.15 9.30 0.07
Updated on: 09 Jul 2020 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 19 Sep 19 Dec 19 Mar 20
All listed Companies
 Income 4.6 -2.3 -1.7 -4.0
 Expenses 2.7 -3.1 -2.2 -0.9
 Net profit 17.5 -1.3 -11.1 -42.9
 PAT margin (%) 6.2 5.3 5.1 3.1
 Count of Cos. 4,486 4,445 4,407 2,637
Non-financial Companies
 Income 2.4 -6.3 -5.5 -8.1
 Expenses 1.6 -6.7 -6.4 -4.0
 Net profit -7.5 -13.5 -14.1 -45.9
 PAT margin (%) 6.3 5.8 5.7 4.2
 Net fixed assets 10.4 13.8
 Current assets 5.0 2.8
 Current liabilities 5.0 3.8
 Borrowings 8.4 14.9
 Reserves & surplus 6.0 4.3
 Count of Cos. 3,361 3,335 3,301 2,033
Numbers are net of P&E
Updated on: 09 Jul 2020 8:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.3 13.2 4.3
 Expenses 9.8 13.4 2.8
 Net profit -39.9 20.7 15.0
 PAT margin (%) 2.0 2.4 10.3
 Assets 10.9 9.2 11.8
 Net worth 7.5 8.5 6.5
 RONW (%) 3.5 4.4 11.7
 Count of Cos. 26,220 24,732 364
Non-financial Companies
 Income 8.5 13.6 0.1
 Expenses 8.6 13.8 -1.2
 Net profit -8.7 23.5 4.6
 PAT margin (%) 2.8 3.2 12.7
 Net fixed assets 7.1 4.9 30.4
 Net worth 6.1 8.4 3.6
 RONW (%) 5.7 7.0 15.3
 Debt / Equity (times) 1.0 0.9 0.5
 Interest cover (times) 2.1 2.4 6.3
 Net working capital cycle (days) 77 69 -13
 Count of Cos. 21,415 20,146 258
Numbers are net of P&E
Updated on: 09 Jul 2020 7:12PM