Travel · allowance
Travel and transfer allowance
Cost of travel on tour or transfer, including packing and transport of effects, is exempt in both regimes.
How the taxable value is determined
Exempt to the extent actually incurred on travel on tour or on transfer. Retained under the new regime.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Tickets, movers' invoices, and the transfer order.
Legal basis: Rule 2BB(1)(a), Income-tax Rules
Frequently asked questions
Is travel and transfer allowance taxable in India?
Cost of travel on tour or transfer, including packing and transport of effects, is exempt in both regimes. Exempt to the extent actually incurred on travel on tour or on transfer. 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(1)(a), Income-tax Rules.
What records should I keep for travel and transfer allowance?
Tickets, movers' invoices, and the transfer order.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.