Location based · allowance
Border, remote and high-altitude allowances
Location-linked allowances carry small fixed monthly exemptions — old regime only.
How the taxable value is determined
Prescribed monthly amounts apply by area category under Rule 2BB(2). Withdrawn under the new regime.
Regime availability
- Old regime
- Available
- New regime
- Not available
Documentation to keep
Posting order establishing the location.
Legal basis: Rule 2BB(2), Income-tax Rules
Frequently asked questions
Is border, remote and high-altitude allowances taxable in India?
Location-linked allowances carry small fixed monthly exemptions — old regime only. Prescribed monthly amounts apply by area category under Rule 2BB(2). Withdrawn under the new regime.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is not available. Legal basis: Rule 2BB(2), Income-tax Rules.
What records should I keep for border, remote and high-altitude allowances?
Posting order establishing the location.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.