Transport allowance to be tax-free for up to Rs 1,600 per month | business | Hindustan Times
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Transport allowance to be tax-free for up to Rs 1,600 per month

In what would leave more money in the kitty of the “aam aadmi”, finance minister Arun Jaitley has proposed to raise tax-free transport allowance limit from Rs 800 to Rs 1,600 in a month, in the Union Budget.

business Updated: Mar 01, 2015 00:08 IST
HT Correspondent
Transport allowance

In what would leave more money in the kitty of the “aam aadmi”, finance minister Arun Jaitley has proposed to raise tax-free transport allowance limit from Rs 800 to Rs 1,600 in a month, in the Union Budget.

Industry chamber CII said the budget has tried to address the tax burden of the middle class, and raising the deduction in transport allowance was one of the measures.

Transport allowance is typically offered to an employee to meet commuting expenses between the place of her residence and place of duty. The individual enjoys tax exemption for the amount paid under this head.

Jaitley said taxation proposals were made keeping in mind the needs of the middle class tax payers.

“Raising the limit of transport allowance exemption and additional deduction of Rs 50,000 for NPS will help taxpayers to save little more in taxes,” said Kuldip Kumar, partner and leader, personal tax, PwC India.

“All in all, focus on Ache Din for Aam Admi,” said Parizad Sirwalla, head, global mobility services, tax at KPMG India.