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Exemption of Transport allowance from Salary

Jagan (B.Com) (35 Points)

10 May 2007

If an employee receives only Rs.4000/- as transport / conveyance alowance through out the year, can he claim full deduction of 9600/- from his total salary income?

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13 Replies

Jitin (22 Points)
Replied 10 May 2007

hi
i saw your questio- yes the employee will get deduction of 9600 but since the amount received is rs.4000
the deduction will be oly rs 4000
thus no tax will be paid on transport allowance.

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Rajeshmittal (71 Points)
Replied 10 May 2007

The deduction is for Rs 800/- p.m. or actual received. In this case dedyuction can not be more than Rs 4000/-

Mkk (55 Points)
Replied 10 May 2007

Whether FBT would be payable under conveyance head in case of company on the payment of transport allowance exempted amount.

Shankar (58 Points)
Replied 10 May 2007

allowance upt rs. 800 per month is exempt . e it is maximum & not minimum. so what ever amount recd should not more then 9600 p.a exempt from tax

shankar
9820319130

(Guest)

If Home Loan is on both partners name . Can both partners can take Income tax benefits and HOW? I am lecturer in rayat College , 9815614259.

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naval (accountant) (21 Points)
Replied 07 November 2008

My Question is : The Transport Allowence for a Handicap Employee is 1600/- p.m. i.e. exemption limit..... if he get this allowence for 3 months and amount is 1800/- then what will be his deduction amount????????????

Please send me as soon as possible

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 November 2008

Dear Naval,

Transport allowance under rule 2BB is limited to Rs. 1600/- on monthly basis and hence balance Rs. 200/- monthly (Rs. 1800 - Rs. 1600) will be taxable

Regards

(Guest)

Sir, (This is not a reply but a query, please)

The exemption for transport allowance in the IT is Rs. 1600/- p.m. for handicapped and Rs. 800/- p.m. for others. Now my questions are :

(a) If a person has been getting Rs. 100/- p.m. for say 6 months and gets Rs. 1600+256 for the remaining 6 months, can he claim claim exemption of Tpt allc for

(i) Rs. 9600/- (800x12) or (ii) Rs. 600 (6x100)+Rs. 800x6 = Rs. 5400/- or

(iii) 6x100+6x1600 or

(iv) (since the exemption mentioned above is for old rates before introduction of CCS (Revised) Pay Rules, 2008.) is it Rs. 1600x12

and

(b) Is the DA now given on Tpt is exempt like Transport Allowance ?

Thanks

RK Rao

(Guest)

Questions are;

1.Housing loan taken jointly with my wife,exemption on principal how much

2.TA IT exemption on the amount exceed Rs. 9600

Omkar (Student) (255 Points)
Replied 07 December 2008

To Sudhir,

Any one can take the advantage of housing loan.Better to take the benefit in hand of higher income.

Since the deduction of pricipal amount of HL has been considered u/s 80C.So,the overall limit of 80C should not exceed Rs 1 lakhs (including HL's pricipal)

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(Guest)

What is the limit of transport allowance extended to central govt. employes?

(Guest)

6th Pay commission has introduced transport allowance to central govt. employes. Now the question wether transport allowance is taxable? If exemption how much in a year?

Shudhanshu Agrawal (Business) (2570 Points)
Replied 08 December 2008

Originally posted by :Guest
"	If Home Loan is on both partners name . Can both partners can take Income tax benefits and HOW? I am lecturer in rayat College , 9815614259.	"

Yeah both the partners can take the claim .....but in the ratio they are partner in the home loan.......and in this case individual limit will be 150,000/-