IT Exemption on DA component of TA

[Neeraj Lall]

Sir,

I am a central govt. employee and I received ₹ 900/month as Transport /Conveyance Allowance. Out of ₹ 900, ₹ 400 is actual TA and rest of ₹ 400 is DA component of TA. My TA is 400+125% of 400 = 400+500=900.

What is want to know is IT exemption (which is currently ₹ 1600/month) is allowed only on the base TA or the whole of TA. I will get exemption as 400 per month or 900 per month

AI Summary

Transport allowance exemption: whether the dearness allowance component counts toward exempt transport allowance under income tax rules. Whether the income tax exemption on transport/conveyance allowance applies to the base transport allowance alone or to the entire allowance including the dearness allowance component, given a reported monthly conveyance of Rs. 900 composed of a base amount and an added DA portion; the question seeks the correct taxable treatment and calculation method for applying the exemption ceiling to central government employees.