February 5, 2014



From: CA Dipjyoti Majumdar

An employee went to Delhi from Kolkata by train. From Delhi he went to Haridwar, Mussuorie etc by car and came back to Delhi. Naturally he returned to Kolkata from Delhi by train. The question that is disturbing me is if he is entitled to claim deduction on car expenses from Delhi and back to Delhi under section 10(5) read with Rule 2B.

It is stated therein, inter alia, where a journey is performed by circuitous route the exemption is restricted to what is admissible by shortest route. Similarly where journey is performed in  circular manner touching different places the exemption is limited to what is admissible from place of origin to farthest point reached by shortest route.


Hi Dipjyoti Ji,
As per my understanding of the Income Tax provisions, rules and your query, my answers are given below:
1. The employee can claim the expenses incurred from Origin to the farthest point i.e. from Kolkata to Mussuorie and back.
2. The exemption amount will be amount spent or the amount of fare from the shortest route whichever is less. If there is a train from Kolkata to Mussourie than its AC First Class Ticket fare would be taken or if there is no train the fare of the bus will be taken.

Hope this helps you, feel free to contact further.


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