Is transport allowance taxable ?

Hey friend,

I completely understand your confusion about ‘is transport allowance taxable’. There have been some changes in taxation of goods, services and income. To help you out, I conducted thorough research on this topic. Keep reading to know everything that I found .

Is transport allowance taxable in India ?

Until 2017, Transport Allowance of Rs. 1,600 per month was not taxable for salaried employees. This amount was tax free, any amount received more than Rs. 1600 was taxable.

To answer your question, is transport allowance taxable ?

Yes, transport allowance paid to employees is considered to be fully taxable in India. This decision was taken by tax authorities when they reintroduced standard deduction after the financial year 2017-2018.

According to the  new tax regime of  FY 2018, a standard deduction of Rs. 40,000 can be claimed by a salaried employee.

This is all from my side on is transport allowance taxable.