Transport allowance withdrawn by CBDT, i.e. provisions relating to exemption of ‘Transport Allowance’ of Rs. 1,600 pm for salaried individuals/ employees to meet their commuting costs between residence and office, stands withdrawn from 1 April, 2019 (FY 2018-19/ AY 2019-2020). It may be noted that reintroduction of Standard Deduction by the Finance Act, 2018 has resulted in getting transport allowance withdrawn.
However, it may be noted that the Transport Allowance upto Rs. 3,200 pm shall continue to be exempt in the case of an employee, who is blind or deaf and dumb or orthopaedically handicapped with disability of lower extremities.
S.O. 1517(E).—In exercise of the powers conferred by section 295, read with sub-clause (ii) of clause (14) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
(1) Short title, Commencement and application.– These rules may be called the Income-tax (Third Amendment) Rules, 2018.
(2) They shall come into force on the 1st day of April, 2019 and shall apply to the assessment year 2019-2020 and subsequent assessment years.
2. In the Income-tax Rules, 1962, in rule 2BB, in sub-rule (2), in the Table, against serial number 10, the entries under columns (2) to (4) shall be omitted.
Note : The principal rules were published in the Gazette of India vide notification No. S.O. 969(E), dated the 26th March, 1962, and was last amended by vide notification number G.S.R. 332(E) dated 03/04/2018.
stands withdrawn from “1 April, 2019″…. is it 1st April, 2018??
Assessment year starts from 1 April 2019 for the salary received in fy 2018-19. Right?
Does 1st April 2019 means F.Y 2019-20 (A.Y 2020-21)?
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Standard deduction is 40000/- TA rebate is Rs 1600 pm but for handicapped income tax calculations Is it add or not in taxable income.
Is Standard deduction 40000 is applicabel for fy 2018-19?
Pl confirm from which date it comes/will come into force? Is it 01.04.2019 or 01.04.2018 ? Can we claim the TA rebate for FY 2018-19?
In the case of handicapped assessees, maximum transport allowance exemption is Rs.38400 (3200×12). My question is whether handicapped employee can also avail benefit of standard deduction of Rs.40000 in addition to transport allowance of Rs.38400?
Of course Yes.
Can I claim convenience allowance Ay 2019-20 other than standard deduction 40000?