Transport Allowance (popularly known as Conveyance Allowance) is exempt U/s 10(14) read with rule 2BB is Rs. 800/- p.m. Meaning of Transport Allowance:- Transport Allowance is granted to an employee (exception mentioned below) to Meet his Expenditure for purpose of Commuting between place of his residence & place of duty.
Exception:- If Transport Allowance is granted to an employee, who is blind or orthopaedically handicapped with disability of ,lower extremities to meet his expenditure for personal commuting between teh place of his residence & place of his duty then the exemption limit will be Rs. 1,600/- p.m.