TRANSPORT ALLOWANCE RULES AND TAX EXEMPTION

 

TA RULES & TAX EXEMPTION

TRANSPORT / CONVENIENCE ALLOWANCE RULES, EXEMPTION IN INCOME TAX IN 7^TH PAY COMMISSION

 

According to the definition, the transport allowance or conveyance allowance stands for special category incentive or allowance that is given by the government for its employees working in the government sector. The allowance is used by the employees to cover their travelling expenses that they incur when travelling from their home to their workplace.

TRANSPORT ALLOWANCE RULES

1.Under the latest recommendations made by the government sector it is certain that this allowance will be valid only for employees working in the government sectors.

2.The allowance will be paid to cover the travelling expense for their employees only between their home and work destination.

3.The allowance will be calculated for a period of one year for the employees. It is also certain that employees of the central government sector will be getting TA as per recommendations under 6^th CPC.

                  TRANSPORT ALLOWANCE LIMITS UNDER FY 2016-17 AND FY 2017-18

1.Under the 6^th CPC it is certain that the government had set a limit of Rs 19,200 for which government shall not charge any tax amount.

2. The government had set this as the maximum travelling allowance that will be valid for tax exemption for the employee for the fiscal year 2016-17.

3.Under the recommendations the government had not stated the maximum limitation of TA that will be given to the employee.

4.The set amount is to be paid for the employees for recovering one year travelling cost(Rs.1600 monthly).

5.As for central government sector employees it is certain that they will be paid the same TA as no changes has been made by the government in TA.

TRANSPORT ALLOWANCE TAXABLE OR NOT

1.With limitation of Rs.19,200 per annum it is certain that if the cost of travelling   for an employee doesn’t exceed this limitation( Rs.1600 monthly) then the amount is not taxable.

2.In case of TA exceeds this limitation then it is certain that under the recommendations made transport allowance will be taxable under 7^th pay commission.

TRANSPORT ALLOWANCE FOR HANDICAP

**Under the recommendations made by the government in  7^th pay commission it is clearly stated that the handicapped person will be given with a minimum allowance of Rs.2250 + DA monthly