1. CBDT vide notification no. 17/2018, Dated 06/04/2018 has amended rule 2BB of Income Tax Rules. This amendment has an impact of withdrawing transport allowance allowed to employees of Rs. 1,600 per month. However, CBDT has not withdrawn transport allowance of Rs. 3,200 per month allowed to handicapped employees.
2. However, there no mention of exemption u/s 10(14)(i). In my sense since Transport allowance and Medical reimbursements are only substituted by standard deductions, still, exemption u/s 10(14)(i) exists. So, any kind of allowance u/s 17 clause 2 still remains to be exempted u/s 10(14)(i).
3. So, exemption provision still exists and can be claimed for transport allowance to handicapped and blind employees.
Please correct me if the above interpretation has an alternative view.
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