List of Exampted Allowance or head of income for salaried employees after 2025 budget

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Somnath (Querist)
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05 February 2025 Dear All
What are the list of Exampted Allowances or Head of income for salaried employees after 2025 budget (New Tax Regiam) ?
Local conveyance @ Rs 1600/- PM is still exampted for FY/25-26 tax computation or not ?
Perquisit value for rent free accomodation outside from home town location is taxable or not ?

Plz reply with notification.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2025 Under the New tax regime, you can claim tax exemption for the following:

Salary:
Transport allowances in case of a specially-abled person.
Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
Any compensation received to meet the cost of travel on tour or transfer.
Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
Perquisites for official purposes
Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
Budget 2023 introduced a standard deduction of Rs 50,000 under New Tax Regime applicable from FY 2023-24. This has been increased to Rs.75,000 in Budget 2024 applicable from FY 2024-25 .

1 Conveyance allowance allowed under new tax regime.
2 Perquisite value of rent free accommodation taxable.

Somnath

Somnath (Querist)
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06 February 2025 Thank you sir for your reply
Is there any maximum limit fixed for monthly conveyance allowance (tax exampted) in this budget for salaried employees ?
As example Rs 1600/- per month or any higher amount.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2025 No higher amount, it's only Rs 1600 per month allowed.

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