-02-10: Transport allowance to the extent of Rs 800/- exempted from Income TAX :

As per para 5.2(10) of CIRCULAR NO. 1/2010 [F. NO. 275/192/2009 IT(B)], DATED 11-1-2010 of the Income Tax Department, the transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 800 per month.