Transport Allowance Tax Provisions under Section 10(14)
While general transport allowance was merged into standard deduction, blind, deaf and orthopedically handicapped employees continue to claim ₹3,200 per month tax exemption.
Frequently Asked Questions (FAQs)
Is transport allowance tax-exempt for normal employees?
For normal employees, standard deduction of ₹50,000 (Old) / ₹75,000 (New) subsumed transport and medical allowances. However, differently-abled employees (blind, deaf, orthopedically handicapped) continue to enjoy a special exemption of ₹3,200/month (₹38,400/year).
