Transport allowance of Rs.1600 pm withdrawn | CBDT notifies Third Amendment Rules 2018

Transport allowance of Rs.1600 pm withdrawn | CBDT notifies Third Amendment Rules 2018 The Central Board of Direct Taxes (CBDT), vide Notification number 1517(E) dated 6th April 2018, has omitted S.No. 10 of sub-rule (2) of rule 2BB of Income Tax rules. S.No. 10 of sub - rule (2) of rule 2BB of Income Tax rules reads as follows:

Sl. No.	Name of allowance	Place at which allowance is exempt	Extent to which allowance is exempt
10.	Transport allowance granted to an employeeto meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty	Whole of India	Rs.1600 per month

This means that the exemption of transport allowance of Rs. 1,600 per month, which was granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty now stands omitted. The notification is applicable from1st day of April, 2019. The is notification is given below for your reference:

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MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 6th April, 2018 (Income-tax)

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;

[Notification No. 17/2018/F. No.370142/02/2018-TPL] PRAVIN RAWAL, Dir. (TPL-II)

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.

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