+ Reply to Thread
Results 1 to 6 of 6

Thread: Exemption of Tpt Allowance from Tax

  1. #1
    Senior Member R K Rao is on a distinguished road
    Join Date
    Oct 2008
    Posts
    441

    Question Exemption of Tpt Allowance from Tax

    Dear Sirs/Friends,

    We all know that prior to 6th CPC, the entire transport allowance was exempt from income tax. On the same analogy, the entire transport allowance (excluding DA on it), after the 6th CPC should also be exempt from income tax. However, the present limit is Rs. 9600/- and we all seem to convey the same to one another.

    It is not knwon whether the matter is submitted/ under consideration, at all, at the appropriate level (so that we can claim refund if favourable orders are issued) - or is this the final amount that is going to remain for some time now.

    Thanks.

    RKR

  2. #2
    Senior Member jitendraacr is on a distinguished road
    Join Date
    Sep 2008
    Location
    SRINAGAR (J&K)
    Posts
    566

    Default

    Dear friend
    Your contention is correct but it is also a fact that it requires amendment in IT Act which has not been done so far. Any amendment may be carried out after next year budget, it is my guess only. Till that time the limit of Rs.9600/- will continue.
    Jitendra

  3. #3
    Senior Member R K Rao is on a distinguished road
    Join Date
    Oct 2008
    Posts
    441

    Default

    Dear Jitendra Sir,

    Thank you.

    RKR

  4. #4
    Senior Member ramanrao60 is on a distinguished road
    Join Date
    Mar 2009
    Location
    hyderabad
    Posts
    218

    Default

    some ddos including mine were under mistaken impression that ta is fully exempt from levy of it. but ta beyond 9600 per annum is taxable as the law stands now. hope the fm amends it act in financial year 2010-11 at least.

    however from financial year 2011-12 onwards the new tax code is expected to come into effect where in almost all allowances without any exemptions will be taxed at lower rates like up-to rs 10 lakhs @ 10% etc

  5. #5
    Member Raj Kishore Sharma is on a distinguished road
    Join Date
    Dec 2009
    Location
    Najafgarh, New delhi
    Posts
    39

    Default

    Quote Originally Posted by jitendraacr View Post
    Dear friend
    Your contention is correct but it is also a fact that it requires amendment in IT Act which has not been done so far. Any amendment may be carried out after next year budget, it is my guess only. Till that time the limit of Rs.9600/- will continue.
    Jitendra
    I may add that it is not Rs. 9600 per year but is just Rs. 800 per month in the case of normal employees and the exemption limit is double in case of physically challenged ones. It makes difference if we talk in terms of months and not years as Transport Allowance is not paid to teachers during vacations. Suppose a teacher does not get T.A. for May and June in a year, he can only claim exemption of only 8000 and not of 9600.

    Raj Kishore Sharma

  6. #6
    Senior Member RKPATHAK is an unknown quantity at this point
    Join Date
    Feb 2009
    Location
    Gurgaon
    Posts
    1,019

    Default

    Yes wht Raj Kishore said is correct

+ Reply to Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts