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Transport allowance exemption

346 views 4 replies
Hello Experts,

A company has fixed Transport allowance of Rs.2000/- and as per IT exemption employee is getting tax exemption of Rs.900/- and balance is taxable.

My question is that is it mandatory from the department to submit bills for entire amount of Rs.2000/- or can we submit only bills for Rs.900/- and avail exemption and balance taxable. Please clarify the same.

Thanks
Replies (4)
If reimbursement then 2k is needed if allowance only 900 bills should be sufficient
How are you

It will be sufficient to submit supporting vouchers up to Rs 900 for the claim. 

Transport allowance and medical allowance was merged into standard deduction of Rs. 40000 and now the same is 50000.

So no further separate deduction can be again claimed for transport allowance based on amount incurred.

All other exemptions claimed from allowances have to be supported by documentary proof and is subject to actual expenditure only.


So in your case you will received 50000 standard deduction. and there is no separate Rs. 900 exemption. Thus, no bills to submit.

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