You are here: Home » Budget » News » Individual
Business Standard

Union Budget: Transport allowance limit doubled

Total annual benefit for salaried employees now at Rs 19,200

BS Reporter  |  Mumbai 

Transport allowance for salaried employees has been doubled to Rs 1,600 per month from the existing Rs 800 per month. The total yearly benefit will amount to Rs 19,200 as opposed to Rs 9,600 at present.

Industry watchers had expected the limit to be enhanced to anywhere between Rs 3,000 and Rs 4,000 per month. The hike in the limit is especially disappointing considering that the present exemption limit was arrived at more than a decade ago..

Read our full coverage on Union Budget

“It's a beginning and a step in the right direction, although he (the finance minister) could have done a lot more,” said Homi Mistry, partner, Deloitte Haskins & Sells.

Transport allowance is granted to an employee to meet expenditure on commuting between place of residence and place of duty. The amount paid under this head is exempt from taxation.

At present, an exemption of Rs 1,600 per month is given only for blind and handicapped employees.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 28 2015. 13:27 IST
RECOMMENDED FOR YOU