View Full Version : Transport Allowance Deduction for handicapped employees LIMIT

02-12-2009, 09:49 PM
Hi all
I am a handicapped central Govt. employee drawing 1600 + DA (Grade pay 4800/-) as transport allowance and claiming Rs. 50000 deduction u/s 80CCC. How much of my transport allowance is to be excluded from salary u/s 10? I am excluding Rs. 1600/- p.m. but my employer has excluded only 800 p.m. and is insisting on the CBDT circular where it has been mentioned that 1600 p.m. can be excluded?
Can anybody give me authority from CBDT to exclude 1600 p.m. tpt as clearly mentioned in Swamy's Handbook?

03-12-2009, 04:53 PM
under the following rules...
1. The Transport allowance is exempted up to Rs. 800 per month.
2. However, in case of physically handicapped persons it is to a maximum extent of Rs. 1600 per month.
3. Transport allowance granted for commuting between place of residence and place of duty up to Rs. 800 a month is exempt under Rule 2BB(10).
4. For blind and orthopaedically handicapped in lower extremes, such allowance stands enhanced to Rs. 1,600 a month under Rule 2BB(11).
5. Conveyance allowance, on the other hand, is exempt without any specific limit for purposes of duties of an office or employment, provided that no free conveyance is provided by the employer under Rule 2BB(1)(c).
6. Where there is no outdoor duty for the employees, such conveyance allowance will have to be treated as taxable.

with regards...

03-12-2009, 08:25 PM
Thanx dear
may i know the cbdt circular No. OR copy of the section for these rules