In the Income Tax Law, if a both employee (Husband & Wife) works with same Employer they can't be claim exemption of Conveyance Allowance u/s. 10 of Income Tax Act and the both assessee purchase immovable property as Long Term Capital gain jointly, the exemption is available u/s. 54 of Income Tax Act.
It’s a very interesting query with two different views are possible. There is nothing specific in the Income Tax Act/ Rules to express one side opinion on the issue. One can form an opinion that section 10(14) read with Rule 2BB restricts an exemption towards conveyance allowance to Rs. 800/- per month for both the employments taken together. The possibility of another interpretation that Rs. 800/ per month is a deduction admissible per employment and not per assessee cannot be over ruled. I have a conservative opinion & of the view that Rs. 800/- per month deduction is available per assessee and not separately for each employment.
No deduction is admissible u/s 54 towards Short term capital gain. Exemption u/s 54 is available only if the assessee has Long Term Capital Gain (LTCG).
It’s a very interesting query with two different views are possible. There is nothing specific in the Income Tax Act/ Rules to express one side opinion on the issue. One can form an opinion that section 10(14) read with Rule 2BB restricts an exemption towards conveyance allowance to Rs. 800/- per month for both the employments taken together. The possibility of another interpretation that Rs. 800/ per month is a deduction admissible per employment and not per assessee cannot be over ruled. I have a conservative opinion & of the view that Rs. 800/- per month deduction is available per assessee and not separately for each employment.
No deduction is admissible u/s 54 towards Short term capital gain. Exemption u/s 54 is available only if the assessee has Long Term Capital Gain (LTCG).
