Hi.
The transport allowance has been increased from Rs800 to 1600 per month for AY 2016-17 which equals to tax benefit of 19,200 in year. Has there been any change to to Perquisite : Fuel Reimbursement & Maintenance Expenses aslo ? Tax benefit under transport allowance i.e. 19,200/- has become greater than 14,400/- (36000-21600) where 36,000 per annum is max allowed by my company less INR 21600 ? If no change to perquisite then I guess default transport allowance is better option that 'Fuel Reimbursement & Maintenance Expenses'. Please clarify.
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Perquisite : fuel reimbursement & maintenance expenses
Replies (3)
I think no change has been proposed w.r.t. perquisite. In any case, deduction of 21600 is more than 19200, difference is small but if you could get bills, then you should go for 21600 only. If difficult to obtain bills, then opt for transport allowance deduction.
| Originally posted by : Poornima M | ||
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I think no change has been proposed w.r.t. perquisite. In any case, deduction of 21600 is more than 19200, difference is small but if you could get bills, then you should go for 21600 only. If difficult to obtain bills, then opt for transport allowance deduction. |  |
The deduction is only 14,400 and not 21600 which is less than new Travel allowance. I submit bill for Rs 36,000. They provide benefits(perk) of Rs 36,000 - 21,600 = 14,400.
You can either claim deduction @ 1600 pm or @ 1800 pm, so that's why I said, fuel reimbursement is better.
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