Published On: Wed, Apr 15th, 2015

Finmin notifies hike in transport allowance exemption doubled to Rs 1,600 per month

New Delhi: The Finance Ministry has notified the hike in transport allowance exemption to Rs 1,600 per month from Rs 800 as announced in the Budget.

Finance Minister Arun Jaitley (Centre)

Finance Minister Arun Jaitley (Centre)

As part of his “extension of benefits to middle class tax payers”, Finance Minister Arun Jaitley had doubled the transport allowance exemption to Rs 1,600 per month.

From now onwards, an individual would get income tax relief on Rs 19,200 per year as compared to Rs 9,600.

The notification issued by the Central Board of Direct Tax (CBDT) further said the exemption limit for blind and orthopaedically handicapped to has been doubled to Rs 3,200 a month.

Transport allowance is exempted from income tax.

PTI

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