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Transport allowance exemption

G. Parameshwar Rao (Accounts officer) (66 Points)

17 May 2022

Hello Experts,

A company has fixed Transport allowance of Rs.2000/- and as per IT exemption employee is getting tax exemption of Rs.900/- and balance is taxable.

My question is that is it mandatory from the department to submit bills for entire amount of Rs.2000/- or can we submit only bills for Rs.900/- and avail exemption and balance taxable. Please clarify the same.

Thanks

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4 Replies

Laxmi Kudire (140 Points)
Replied 17 May 2022

If reimbursement then 2k is needed if allowance only 900 bills should be sufficient

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samsad ali (2 Points)
Replied 18 May 2022

How are you

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 18 May 2022

It will be sufficient to submit supporting vouchers up to Rs 900 for the claim.

CA Raj Doshi (Practising CA) (8924 Points)
Replied 19 May 2022

Transport allowance and medical allowance was merged into standard deduction of Rs. 40000 and now the same is 50000.

So no further separate deduction can be again claimed for transport allowance based on amount incurred.

All other exemptions claimed from allowances have to be supported by documentary proof and is subject to actual expenditure only.

So in your case you will received 50000 standard deduction. and there is no separate Rs. 900 exemption. Thus, no bills to submit.

Please convey a like to this answer if it was helpful.

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