The transportation allowance allotment must be noted when reviewing your pay stub or offer letter. This allowance is included in your CTC and fixed pay, same as other allowances. But do you know how much transport allowance is exempt from income tax? As far as I know, a maximum of Rs. 1,600 per month is allowed for exemption.
What is the Tax Exemption Limit for Transportation?
Transport allowance is provided by employers to cover commuting costs between an employee's residence and workplace. While this was once a common tax-exempt component of a salary, recent changes in Indian tax law have altered its applicability.
Under the old tax regime, a standard exemption was available:
Rs1,600 per month (i.e., Rs19,200 per year) is exempt from income tax for salaried employees.
For blind, deaf and dumb, or orthopedically handicapped employees, the exemption is Rs3,200 per month (i.e., Rs38,400 per year).
I hope you found this information helpful.
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How much Transport Allowance is Exempt from Income Tax?
ravi
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2025-05-01T11:05:36+00:00 2025-05-01T11:05:37+00:00Comment
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