Are Transport Allowance Taxable?

Under the U.S. Internal Revenue Code section 132(a), the qualified transportation benefits are one of the eight types of statutory employee benefits (also known as fringe benefits) that are excluded from gross income in calculating federal income tax.

Is transport allowance is taxable or not?

Transport Allowance of Rs. 1,600 per month is tax-free for a salaried employee. Any amount received in excess of Rs. 1600 is taxable.

How much transport allowance is exempt from income tax?

Conveyance Allownace Exemption

Conveyance allowance is given an exemption of up to Rs. 19,200 per annum or Rs. 1,600 per month. The sections under which this exemption is applicable are Section 10(14)(ii) of Income Tax Act and Rule 2BB of Income Tax Rules.