CA Sandeep Kanoi

CA Sandeep KanoiCBDT has vide Notification No. 39/2015 increased Transport allowance exemption  limit for employees from Rs. 800 to Rs. 1,600 per month. In case the employee is blind or orthopaedically handicapped with disability of lower extremities the limit is increased from Rs. 1600 to Rs. 3200/- per Month. The revised exemption Limit is applicable from A.Y. 2016/17 /F.Y 2015-16 as can be seen from the chart given below:-

S. No. Name of allowance Place at which allowance is exempt Extent to which allowance is exempt
From A.Y. 2016-17 Up to A.Y. 2015-16
1. Transport allowance granted to an employee [other than an employee referred to in serial number 2] 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.
2. 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.
 Notification No. 39/2015 [F. No.142/02/2015‐TPL] / SO 1002(E) : Income‐tax (6th Amendment) Rules, 2015
Government of IndiaMinistry of FinanceDepartment of Revenue(Central Board of Direct Taxes)Income‐tax Notification No. 39/2015Dated- 13th April, 2015

S.O. 1002 (E). – 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.

[F. No.142/02/2015‐TPL]

(Raman Chopra) Director (TPL‐II)

Note .—The principal rules were published in the Gazette of India vide notification No. S.O. 969(E), dated the 26th March, 1962, and was last amended by vide notification S.O. No. 995(E) dated 10th April, 2015.

 

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51 Comments

    1. M.P.Udayakumar says:

      Sir I am drawing Transport allowance and DA on TPT as Rs.13600 + 9032(DA), that is total of Rs.22,632/-drawn against TPT allowance. Please confirm that what amount to be the direct deduction against Transport Allowance.

  1. A.A.KHAZI says:

    sir,

    I am working as a Accountant at Doordarshan Kendra,Gulbarga,in our department some employees are getting 800=00 Transport Allowances and some employees are getting 1600=00 Transport Allowances per month i.e.,according to grade/eligibility. Now calculating Income Tax – Transport Allowance exemption has to be taken as 1600=00 per month for all the employees or otherwise may kindly be enlighten please.

    1. NIPU DUTTA says:

      Dear Sir,
      Please clarify that employees getting TA 800 & 400 are eligible for maximum Tax exemption , i.e., 1600 for TA-800 & 876 for TA-400.
      Kindly mention the Tax Exemption for Case-1 & Case-2 in the table given below-

      TA DA on TA (119%) Total TA Tax Exemption (Per month)
      Case-1 400 476 876 ?
      Case-2 800 952 1752 ?
      Case-3 1600 1904 3504 1600
      Case-4 3200 3808 7008 1600

      – See more at: https://taxguru.in/income-tax/cbdt-notifies-revised-transport-allowance-exemption-limit.html?replytocom=1944144#respond

  2. Ulhas K. Naik says:

    Transport Allowance of Rs.1600/- Per Month and Rs.19200/- Per Annum is Exempted for Computation of Annual Income. It is therefore requested to confirm whether Basic TA of Rs.800/- + DA thereon upto Rs.1600/- Per Month is entitled for Exemption under Income Tax Rules for the Financial Year 2015-16 & 2016-17

  3. Param Lal Bathri says:

    Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16

    1. Parveen Singh says:

      I am getting TA @ Rs800 pm and DA thereon RS 1000 pm . As per new rule TA is exemted -upto Rs 1600 pm in IT. Can I get exemption @ Rs1600 pm in income tax.

    2. Parveen Singh says:

      I am getting TA @ Rs800 pm and DA thereon RS 1000 pm . As per new rule TA is exemted upto Rs 1600 pm in IT. Can I get exemption @ Rs1600 pm in income tax for AY 2017-18.

  4. sridevi says:

    Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16.

  5. shiv harsh says:

    Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. –

  6. Suresh Babu says:

    Undoubtedly YES. Assume a case that tomorrow the Traveling Allowance is withdrawn. Can you continue to get DA on it? This means that Traveling Allowance that is being paid to you is the basic TA as per VIth pay recommendation including the D.A on it. Thereby you are entitled to get exemption of T.A with D.A on it, however, limited to Rs.1800 per month.

  7. yogesh chandra says:

    Sir, My T. A. allowance is rs. 800/- and D.A. on T.A. rs. 952/- please informed me the exemption of T.A. allowance for the financial year 2015-16?

  8. RENU BANSAL says:

    Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – –

    1. RAghvendra Pratap Singh says:

      Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – See more at: https://taxguru.in/income-tax/cbdt-notifies-revised-transport-allowance-exemption-limit.html?replytocom=1885152#respond

  9. Gokuldas Narvekar says:

    Will any responsible person post clarification on the questions raised above at the earliest ? Financial year 2015-2016 is near to end and the clarification in this regard will be MOST USEFUL to a large number of Salaried Persons while calculating their I.T.

    Hope a responsible clarification will be posted at the earliest.

  10. mukesh kumar says:

    I am drawing the salary with Basic pay of Rs. 6090 + 1800 (GP) in PB-1, and drawing the transport allowance Rs. 600+714(DA on tpt allowance)= 1314/- according to Basic pay.
    please inform whether the exemption in transport allowance will be Rs. 1314/- or Rs. 1600/- in calculation of income tax for the year 2015-16 (AY 2016-17)

    1. rajkumar bansal says:

      Sir,
      Whether DA on Transport Allowance is allowed for Tax exemption subject to the limit of Rs. 1600/- per month.

      Rajkumar bansal

      1. RENU BANSAL says:

        Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – –

  11. Anand Singh goni says:

    Sir I received TA Rs.3504 per month. my question is how much amount out of 3504/- i can get as exemption. previous f.y it was Rs. 800/-per month

  12. raviKantPatwal says:

    whether TA exeption of Rs. 1600/-pm is eligible for all employees. since employees below the grade pay of Rs. 5400/- getting TA only 800/- pm

  13. Bheem singh meena says:

    Sir,
    I get TA Rs.800/- per month.
    DA on Ta is Rs.952/- per month.
    Now, FY 2015-16 TA is exempted till Rs.1600/- per month.
    My annual total of TA is Rs.9600/- and DA on TA is Rs.11040
    As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – See more at: https://taxguru.in/income-tax/cbdt-notifies-revised-transport-allowance-exemption-limit.html#sthash.SiXiVV9t.dpuf

    1. R.K.Puri says:

      Sir, I get TA Rs.800/- per month. DA on TA is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16.

      1. yogesh chandra says:

        Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – or not?

  14. Anjali Devi says:

    Sir,
    I get TA Rs.800/- per month.
    DA on Ta is Rs.952/- per month.
    Now, FY 2015-16 TA is exempted till Rs.1600/- per month.
    My annual total of TA is Rs.9600/- and DA on TA is Rs.11040
    As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16.

  15. Gopichand Walkoli says:

    Sir,
    I get TA Rs.800/- per month.
    DA on Ta is Rs.952/- per month.
    Now, FY 2015-16 TA is exempted till Rs.1600/- per month.
    My annual total of TA is Rs.9600/- and DA on TA is Rs.11040
    As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16.

    1. vipin kumar saini says:

      Sir,
      I get TA Rs.800/- per month.
      DA on Ta is Rs.952/- per month.
      Now, FY 2015-16 TA is exempted till Rs.1600/- per month.
      My annual total of TA is Rs.9600/- and DA on TA is
      Rs.11040
      As per new rule, there is TA is exempted till Rs.1600/- per
      month, therefore can I get TA exemption till Rs.19200/- for
      FY2015-16.

    2. DEVENDRA TIWARY says:

      Sir,
      I am getting Transport Allowance Rs.800 per month and D.A. on it 952 i.e. total T.A.Rs.1752 per month. Can I get exemption upto Rs.1600 in Transport Allowance for Income Tax for F.Y.2015-16.

      1. DEVENDRA TIWARY says:

        I am getting Transport Allowance Rs.800 per month and 119 percent D.A. on it. What will be ceiling of exemption in Transport Allowance per month for Income Tax for F.Y.2015-16?

      2. Raj Kumar says:

        Sir, I get TA Rs.800/- per month. DA on Ta is Rs.952/- per month. Now, FY 2015-16 TA is exempted till Rs.1600/- per month. My annual total of TA is Rs.9600/- and DA on TA is Rs.11040 As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16. – See more at: https://taxguru.in/income-tax/cbdt-notifies-revised-transport-allowance-exemption-limit.html?replytocom=1879265#comment-1764206

      3. sushil balkrushna bambole says:

        Sir,
        I get TA Rs.1200/- per month.
        DA on Ta is Rs.920/- per month.
        Now, FY 2015-16 TA is exempted till Rs.1200/- per month.
        My annual total of TA is Rs.14400/- and DA on TA is Rs.11040
        As per new rule, there is TA is exempted till Rs.1200/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16 or it may be 9600/- same as last year 2014-2015. reply

        1. Upendra Kumar says:

          Sir,I get T/A @ 800/- PM and DA 119 % on it what amount of exemption will I get in income tax FY 2015-16.please confirm me and oblige.

  16. Amit Kumar Jain says:

    Dear Sir,
    Please clarify that employees getting TA 800 & 400 are eligible for maximum Tax exemption , i.e., 1600 for TA-800 & 876 for TA-400.
    Kindly mention the Tax Exemption for Case-1 & Case-2 in the table given below-

    TA DA on TA (119%) Total TA Tax Exemption (Per month)
    Case-1 400 476 876 ?
    Case-2 800 952 1752 ?
    Case-3 1600 1904 3504 1600
    Case-4 3200 3808 7008 1600

  17. E. Narayanan says:

    whether TA exeption of Rs. 1600/-pm is eligible for all employees. since employees below the grade pay of Rs. 5400/- receive only 800/- pm TA.

  18. Mehul Suthar says:

    In my view, the increased transport allowance limit of Rs.1600 is applicable from the Assessment Year 2015-2016. Because, the notification specify the date of applicability as 01-04-2015.

  19. JAI KUMAR JAIN says:

    Income‐tax (6th Amendment) Rules, 2015.(2) came into effect on 01.04.2015. In my opinion the enhanced exemption for Transport Allowance is available for the AY 2015-16 onwards.

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