Travel · allowance
Transport allowance for disabled employees
A monthly exemption for commuting costs, retained in both regimes for employees with specified disabilities.
How the taxable value is determined
Exempt up to ₹3,200 per month for blind, deaf and dumb, or orthopaedically handicapped employees commuting between residence and place of duty. This is one of the few allowance exemptions retained under the new regime.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Disability certificate on record with the employer.
Legal basis: Rule 2BB(2), Income-tax Rules
Frequently asked questions
Is transport allowance for disabled employees taxable in India?
A monthly exemption for commuting costs, retained in both regimes for employees with specified disabilities. Exempt up to ₹3,200 per month for blind, deaf and dumb, or orthopaedically handicapped employees commuting between residence and place of duty. This is one of the few allowance exemptions retained 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 available. Legal basis: Rule 2BB(2), Income-tax Rules.
What records should I keep for transport allowance for disabled employees?
Disability certificate on record with the employer.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.