Transportation facility

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2011 Dears,

Employer is providing transportation facility to his employees for commutation from residence to office and incurring Rs. 4500 per month per employee and recovering Rs. 1430 from each employee.
Now the query is how much amount has to be considered for tax? (employer is giving Rs. 800 per month as transport allowance)

is there any applicable case laws?
very very urgent

diwakar mittal

diwakar mittal (Expert)
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14 May 2011 i dont remember any case law relating this
but this ia a exempt perquist so it is not taxable in the hands of employee
employe will get deduction of transport allowance
and employer will show net amount after recovery from employee as transport exp or staff welfare exp.

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