11 June 2011
one of our client is a manufacturing company. Their own vehicles used to transport their goods. Here drivers are getting T.A when they went out station. They are also getting HRA .some of them stay in thier homes at that outstation. my question is whether T.A is allowable to that drivers are not . pls help me its very urgent
12 June 2011
The condition of HRA and Transport allowance are not required to be correlated specifically when one is desirous of taking benefit of both, as in the act no where such conflicting situation has been narrated.
For availing T A the prescribed restriction is " the employee should not be in the receipt of daily allowance." So in my view, 70% of such allowance or Rs 6000/ per month which ever is less. is exempt as per Rule 2BB.