Finance bill 2018 transport allowance
This query is : Resolved
21 March 2018
Hon'ble FM in his Budget Speech has withdrawn deduction towards trasnport allowance @ Rs. 19,200/-. However, such withdrawal has not been found in Finance Bill, 2018. Please clarify.
Nikhil Kaushik
(Expert)
21 March 2018
refer clause 8 on page 8 of this document https://www.indiabudget.gov.in/ub2018-19/fb/bill.pdf
21 March 2018
Proviso (v) is as below:
any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family other than the treatment referred to in clauses (i) and (ii); so, however, that such sum does not exceed fifteen thousand rupees in the previous year;
Thus, clause 8 on page 8 of bill is just in relation to medical expense reimbursement not for transport allowance.
Transport allowance is exempt u/s 10(14) r.w.rule 2BB. There is no specific mention for withdrawal with reference to section 10(14) or Rule 2BB.
any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family other than the treatment referred to in clauses (i) and (ii); so, however, that such sum does not exceed fifteen thousand rupees in the previous year;
Thus, clause 8 on page 8 of bill is just in relation to medical expense reimbursement not for transport allowance.
Transport allowance is exempt u/s 10(14) r.w.rule 2BB. There is no specific mention for withdrawal with reference to section 10(14) or Rule 2BB.
Nikhil Kaushik
(Expert)
21 March 2018
because the amendments to rules are not published with the budget proposals. It is covered in the memorandum though. refer https://www.indiabudget.gov.in/ub2018-19/memo/memo.pdf
Once the updated rules are published, the changes would reflect therein.
Once the updated rules are published, the changes would reflect therein.
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Nikhil Kaushik
(Expert)
21 March 2018
you are most welcome.
30 June 2018
On 6th April 2018, Government throguh notification deleted exemption of transaport allowance.
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