Extend Amount of Allowances of Transport and Blind/Handicapped Per Month Under Clause 14 of Section 10.

Many salaried 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 :

Sr.No	Name of Allowance	Name of Allowance  Allowance is   exempt	Extent to which Allowance is   exempt
46[10.	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.]
48[11.	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.]

Posted in: Dearness Allowance,Gratuity Exempt From Income Tax,House Rent Allowance,Income Tax Exemptions,Pay and Allowances