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
Clarification Sought on Income Tax Exemption for Central Govt Employee's Full Transport Allowance Under Section 10(14). A central government employee inquired about the income tax exemption applicable to their Transport/Conveyance Allowance, which totals 900 per month. This amount consists of 400 as the base Transport Allowance (TA) and an additional 500 as the Dearness Allowance (DA) component. The employee seeks clarification on whether the income tax exemption of 1600 per month applies solely to the base TA of 400 or the entire TA amount of 900. (AI Summary)
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