Transport Allowance exemption
The tax-free part of a transport (commuting) allowance, month by month — section 10(14) / Rule 2BB, old regime only.
Switch calculator — current: Transport allowance exemption
Your details
| Month | Transport allowance | Handicapped? | Exempted | Taxable |
|---|---|---|---|---|
| April | 0 | 0 | ||
| May | 0 | 0 | ||
| June | 0 | 0 | ||
| July | 0 | 0 | ||
| August | 0 | 0 | ||
| September | 0 | 0 | ||
| October | 0 | 0 | ||
| November | 0 | 0 | ||
| December | 0 | 0 | ||
| January | 0 | 0 | ||
| February | 0 | 0 | ||
| March | 0 | 0 |
Only a disabled / handicapped employee is exempt now (₹3,200/month); the general exemption was withdrawn from FY 2019-20. Old regime only.
Your answer
₹ —
Still needed: the monthly allowance.
- The figure, and how it compares where there is a choice
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For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Transport allowance exemption: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
Transport allowance (for commuting between home and office) used to be tax-free up to ₹1,600/month, but that general exemption was withdrawn from FY 2019-20.
Transport allowance (for commuting between home and office) used to be tax-free up to ₹1,600/month, but that general exemption was withdrawn from FY 2019-20. Now only disabled / handicapped employees keep an exemption, of ₹3,200/month. It is an old-regime exemption, entered per month.
- Disabled / handicapped employee: exempt = min(allowance, ₹3,200) per month, in every year.
- Ordinary employee, FY 2017-18 or 2018-19: exempt = min(allowance, ₹1,600).
- Ordinary employee, FY 2019-20 onward: exempt = ₹0.
- Taxable = allowance − exempt.
Worked example
Exempt ₹3,200; taxable ₹800 (per month).
A disabled employee receives ₹4,000 of transport allowance in a month.
- Exempt = min(4,000, 3,200) = ₹3,200.
- Taxable = 4,000 − 3,200.
Exempt ₹3,200; taxable ₹800 (per month).
Frequently asked questions
Can an ordinary employee still claim transport allowance exemption?
No. From FY 2019-20 the general exemption was withdrawn; only disabled / handicapped employees still get ₹3,200/month.
Is the figure monthly or yearly?
Monthly. Enter the allowance for one month; the limits (₹3,200 / ₹1,600) are per month.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.