Transport Allowance Details

Whether the Assessee is handicapped


Tax Free Amount 0
Taxable Transport Allowance 0

What is Transport Allowance?

Transport allowance is a special type of allowance that is given to an employee to fulfil the expenditure for commuting expenses from residence to office and office to residence. Transport allowance is also a part of CTC. It is to fulfil the expenditure needed during the transportation done by employees. Transport Allowance is also given to those who work in the business of transportation. A transport allowance is offered to employees to meet their expenses related to their transport expenditure from home to office to home and vice versa.

Transport Allowance Calculator

Transport Allowance Calculator is simple utility software that helps you to claim the benefits on transport to save the tax. You can use this calculator to know the tax-free amount and taxable amount on salary. Transport Allowance Calculator made the process of estimation of charged tax on salary component convenient, easy and simple.

Who is eligible to avail of the Transport Allowance?

Transport Allowance is provided to those employees who are working in the transportation business to meet their commuting expenditure. In some cases, This is also given to the employee by the employer who specifically mentions it in his employee's CTC. It shows that all salaried employees are eligible to get the transport allowance but self-employed can not claim it therefore preconditions of receiving the taxable allowance should be discussed well between employee and employer.

Is transport allowance taxed or not?

Transport allowance is partially taxed under section 10(14)(i) of the income tax act. The Government believes that transport expenses are genuine and real, so for saving you from the heavy taxes, your whole transport allowance is not taxed.

What are the Limits of tax exemption on Transport Allowance?

For a salaried employee - Transport Allowance of Rs. 1600 per month is not taxable for a salaried person but when the amount, of more than Rs.1600 is received. It is counted as taxable income. For the employees of the transport system - This exemption is provided to those employees who do not get daily transport allowance or run transportation from one place to another one. For specified employees, If the amount received by the employee of the transport system is less thanRs.10,000 in a month then it will not be taxable. For handicapped people - A lower of Rs.3200 per month is tax-free for handicapped employees. Handicapped people are those who are having physical disabilities. Yearly the amount of 38,400 is tax-free for these employees.

Difference between Conveyance allowance and Transport allowance?

Most people are perplexed when it comes to claiming the tax exemption on their income tax returns. They usually make mistakes between the exemption of transport allowance and conveyance allowance. Transport Allowance comes under section 10(14)(ii) of the income tax act. Transport Allowance is provided to an employee to fulfil the expenditure for commuting expenses from residence to office and office to residence. Transport allowance is also a part of CTC. Conveyance Allowance is enclosed under section 10(14)(i) of the income tax act. This allowance is provided to meet the transportation expenditure in the case of official work. To claim the tax exemption on conveyance allowance, it is necessary to be within the limit of the actual spent amount for the official goal.

How tax exemption for Transport Allowance is calculated?

To calculate the tax on exemption allowance is not a hard nut to crack. It is a very simple process. Anyone can calculate his transport allowance. Let's have an example to understand how it is calculated. If your company or employer provides you Rs. 2100 per month as a transportation allowance then the amount which is taxable will be Rs. 500. Because we know that amount should be more than Rs 1600 per month to be taxed. If the received amount was Rs.1600 instead of Rs.2100 then It will be tax-free. You can use our Transport Allowance Tax calculator. It is specially designed to give you an accurate calculation of the tax exemption amount of transport allowance.

FAQs on Transport Allowance Calculator

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What does transport allowance mean?

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Transport allowance is a special type of allowance that is given to an employee to fulfil the expenditure for commuting expenses from residence to office and office to residence.


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Who is eligible for a transport allowance?

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hose employees who are working in the transportation business to meet their commuting expenditure. This is also given to the employee by the employer who specifically mentions it in his employee's CTC.


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Is transport allowance exempt from income tax?

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Yes. Tax exemption on transport allowance can be claimed according to the exemption limits.


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Who can avail of transport allowance exemption?

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Those salaried employees including handicapped also who are having physical disabilities can avail of transport exemption as per the exemption limits.


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Is there any difference between conveyance and transport allowance?

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Transport Allowance is provided to an employee to fulfil the expenditure for commuting expenses from residence to office and office to residence. Conveyance allowance is provided to meet the transportation expenditure in the case of official work.


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What is conveyance allowance?

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Conveyance Allowance is granted to meet the expenses on conveyance in the performance of official duty.


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Procedures to claim Transport allowance when filing the income tax return.

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You need to first check the structure of your salary. Probe and analyse the amount carefully which is a part of your CTC. If the mentioned amount in your salary is Rs.1600 per month then tax-free amount is to the extent of Rs.1600 only. If the amount is less than Rs. 1600 per month then the complete amount would be tax-free.


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What is the rule of transport allowance?

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Employees should not be absent from the place of posting or branch for the full calendar month due to tour travelling. In such a case, that employee will not be allowed a transport allowance in those days.


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What is the calculation formula for transport allowance per month?

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A = Rate of Transport Allowance
D = Percentage of Current Dearness Allowance
A + [(A x D)/100] = Transport Allowance How much transport allowance is exempt? Transport allowance to the extent of Rs. 1600 per month is tax-free. Any amount which is more than Rs. 1600 is considered taxable.


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Is transport allowance taxable in India?

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Yes. Transportation Allowance is taxable in India.


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How is transport allowance calculated in salary?

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You can calculate the Transport Allowance by this formula. A + [(A x D)/100] = Transport Allowance.


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Is allowance considered salary?

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As per the Income Tax Act, Allowances are added to the salary of an individual. It is taxed under the head income from salaries.


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Why is transport allowance given?

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Transport allowance is given to an employee to fulfil the expenditure for commuting expenses from residence to office and office to the residence.


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What is the difference between transport allowance and travelling allowance?

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Travel allowance is provided to meet the transportation expenditure in the case of official work. Transport Allowance is provided to an employee to fulfil the expenditure for commuting expenses from residence to office and office to residence.