Income tax exemption on Transport allowance to employees is doubled from 1-4-15

Income tax department doubled Transport Allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of residence & duty from Rs. 800 to Rs. 1600 whereas Transport allowance granted to physically disabled employee for the purpose of commuting between place of duty and residence is also doubled from Rs. 1600 to Rs. 3200.

Income tax department issued a notification no. 39/2015 dated 13 April 2015 with 6th amendment rules of income tax. Full notification is as under.


In exercise of the powers conferred by section 295, read with clause (14) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

(1) These rules may be called the Income-tax (6th Amendment) Rules, 2015.
(2) They shall come into force on the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in rule 2BB, in sub-rule (2), in the Table,- (a) against serial number 10, in the entry under column(4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.800 per month”, the letters, figures and words “Rs.1600 per month” shall be substituted;

(b) against serial number 11, in the entry under column (4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.1600 per month”, the letters, figures and words “Rs.3200 per month” shall be substituted.
Tags-income tax exemption on transport allowance,transport allowance it exemption,it exemption transport allowance,transport allowance employees exemption

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