Transport allowance exemption doubled to Rs 1,600/month

New Delhi: The Finance Ministry has notified the increase in transport allowance to Rs 1,600 a month from Rs 800 as announced in the Budget.

As part of his "extension of benefits to middle class tax payers", Finance Minister Arun Jaitley had doubled the transport allowance exemption to Rs 1,600 per month.

From now onwards, an individual would get tax relief on Rs 19,200 per year as compared to Rs 9,600.

The notification issued by the Central Board of Direct Tax (CBDT) further said the exemption limit for blind and orthopaedically handicapped to has been doubled to Rs 3,200 a month.

Transport allowance is exempted from income tax.