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Transport allowance is taxable in the hands of the employee since it is added to their gross salaries. However, employees can claim tax exemption for transport allowance as per the exemption limit. Section 10 (14) read with Rule 2BB provides for transport allowance exemption. The amount of exemption is as follows:
Jul 30, 2024 · Section 10(5), or leave travel allowance exemption, is applicable for individual taxpayers. The LTA exemption applies only to the domestic travel expenses, such as airfare, train or bus fare, incurred by the employee.
The Income-tax Act, 1961 offers various tax exemptions, including Leave Travel Allowance (LTA) for salaried employees. LTA can be claimed for domestic travel within India with valid proof of travel. The exemption is limited to actual travel costs and is available for two journeys in a block of four calendar years.
Sep 6, 2024 · Income-tax Act contains provisions for taxability of various allowances received by a taxpayer. These allowances are either in the nature of income which is exempt from tax or is an expenditure which provides weighted deductions to the taxpayer. This list gives a glimpse of tax treatment of various allowances available to a taxpayer.
Aug 20, 2024 · Any employee whose employer offers LTA as a part of the salary can claim a deduction for LTA. Employees with LTA as a salary component can claim an exemption under Section 10 (5) of the Income-tax Act, 1961, for travel expenses. This includes travel for oneself, spouse, and children during the leave period.
Sep 1, 2024 · Your Travel Allowance is tax-exempt as per the Section 10 (14 (ii)) of the Income Tax Act, 1961 up to a limit of INR 1,600 per month. Any extra amount above that, collected as Transportation Allowance, is taxable as per your income slab. If your company provides a means for office transport, the transport allowance will not be provided.
Apr 16, 2024 · Under the New tax regime, you can claim tax exemption for the following: 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.
May 23, 2024 · There are limits on tax exemption depending on your tax situation. These are : Transport Allowance of Rs.1,600 per month is tax-free for a salaried employee. Any amount received in excess of Rs.1600 is taxable. Transport Allowance of Rs.3,200 per month is tax-free for handicapped employees.
Jun 6, 2024 · The leave travel allowance (LTA) exemption limit isn't a fixed amount. It depends on two factors: Actual travel cost: You can only claim tax exemption for the amount you actually spend on travel, not the entire LTA provided by your employer.
Apr 25, 2023 · Only domestic travel is considered for exemption, i.e., travel within India. No international travel is covered under LTC/LTA; The exemption for travel is available for the employee alone or with his family, where ‘family’ includes the employee’s spouse, children and wholly or mainly dependent parents, brothers, and sisters of the employee.
