How to calculate Travelling Allowance Exemption u/s. 10(14)(ii) from Income Tax.

Friends, under section 10(14)(ii) exempt maximum Rs. 800.00 PM Traveling Allowance from Income Tax. For more details the Tax payee Employee follows Traveling Allowances are exempt under section 10(14) (ii), subject to the limits stated there-against:

• Special Compensatory Allowance or High Altitude Allowance or Uncongenial Climate Allowance or Snow bound Area Allowance or Avalanche Allowance:

Rs. 800/- common for various areas of North East, Hilly areas of U.P., H.P. and J &K (for specific details about the areas eligible for the allowance, please refer to the section 10(14) if I T Rules 1962) and Rs. 7000/- per month for Siachen area of J & K and Rs. 300/- common for all places at a height of 1000 mts or more other than the above places.

• Special Compensatory Allowance in the nature of Border Area Allowance or Remote Locality Allowance or Difficult Area Allowance or Disturbed Area Allowance:

Various amounts ranging from Rs. 200/- per month to Rs. 1300/- per month are exempt for various areas as specified in Rule 2BB.

• Special Compensatory (Tribal Area/Scheduled Area/Agency Area Allowance available in M.P., TN, U.P., Karnataka, Tripura, Assam, West Bengal, Bihar, Orissa:Rs. 200/- per month.
• Any allowance granted to an employee working in any transport system to meet his personal expenditure during duty performed in the course of running of such transport from one place to another:

70% of such allowance upto a maximum of Rs. 6000/- per month.

• Children Education allowance:

Rs. 100/- per month per child upto a maximum of 2 children.

• Allowance granted to meet Hostel Expenditure of children

Rs. 300/- per month per child upto a maximum of two children.

• Compensatory Field Area Allowance available in various areas of Arunachal Pradesh, Manipur Nagaland, Sikkim, H.P., U.P. & J&K (for specific details about the areas eligible for the allowance, please refer to the section 10(14) if I T Rules 1962):

Rs. 2600/- per month.

• Compensatory Modified Field area Allowance available in specified areas of Punjab, Rajasthan, Haryana, U.P., J&K, H.P. & North East (for specific details about the areas eligible for the allowance, please refer to the section 10(14) if I T Rules 1962):

Rs. 1000/- per month

• Counter Insurgency Allowance to members of Armed Forces:

Rs. 3900/- Per month

• Transport Allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of residence and place of duty:

Rs. 800/- per month

• Transport allowance granted to physically disabled (blind or orthographically handicapped with disability of lower extremities) employee for the purpose of commuting between place of duty and residence:

Rs. 1600/- per month.

• Underground Allowance granted to an employee working in under ground coal mines:

Rs. 800/- per month.

• Special Allowance in the nature of High Altitude Allowance granted to member of the armed forces:

Rs. 1060 p.m. (for altitude of 9000-15000 ft.)
Rs. 1600/- p.m. (for altitudes above 15000 feet.)

• Special allowance granted to members of armed forces in the Highly Active Field Area Allowance

Rs. 4200/- p.m.

• Special allowance granted to members of armed forces in the nature of island duty allowance:

Rs. 3,250/- in Andaman & Nicobar and Lakshadweep Group of Islands.