Friends
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Many employees are getting Transport Allowance but they are not aware about the rule of exemption from Income Tax under clause (14) of Section 10. This type of allowance can be paid by Employer to meet out the expenditure for the purpose computing between the residence to duty place etc. Detail of rule regarding Transport Allowance, Blind/Handicapped Allowance with extent limit are given as under :-
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Sr.No. Name of Allowance Place at which Extent to which
Allowance is Allowance is
exempt exempt
(1) (2) (3) (4)
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| Transport allowance granted to an employee 47[other than an employee referred to in serial number 11] to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty | Whole of India | Rs. 800 per month.] | |
| Transport allowance granted to an employee, who is blind or orthopaedically handicapped with disability of lower extremities, to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty | Whole of India | Rs. 1,600 per month.] |