Books and Periodicals Allowances Use for
- Through books and periodical allowances, the employee can claim reimbursement over expenses sustain on newspapers, books, magazines, etc.
- Reimbursement for these things is tax-free for employees.
- These reimbursements are tax-free for employees.
- The maximum amount of reimbursement is limited to- The Actual bill amount or Amount provided for this in CTC whichever is lower.
Also, read | Mobile Reimbursement
How Employees Can Claim Books and Periodicals Allowance
- They need to show the expenditure proof they incurred on books/newspapers etc.
- In some cases, employees need to submit bills of purchase they made to claim benefits.
What if you Show Fake Bill to Claim Books and Periodicals Allowance?
- Many taxpayers are submitting fake bills to claim this allowance or to claim HRA, LTA, etc.
- In addition, the new income tax return (ITR) form will help identify such cases through computer-based processing, a highly-placed tax official told India Today on condition of anonymity.
- To curb the practice of claiming tax exemption through allowances/reimbursement supported bogus/fake bills, documents, etc.
- However, the Central Board of Direct Taxes (CBDT) has introduced the new ITR form for the assessment year 2019-20.
- Hence, If a case is chosen for scrutiny, the assessee will need to show all the bills, documents, etc. to justify the claim of tax write-off made by him, said accountant Manish Garg.
What are the books and periodicals exemption sections?
- Employees can claim reimbursement of expenses incurred on books, newspaper subscriptions, periodicals, journals, and so on.
- The maximum sum of reimbursement is limited to the sum provided for books and periodicals in CTC.
- According to Income Tax section 10(14)(i) of the income tax act, all allowances offered to employees are tax-free.