Question

R is an employee of a Transport Company. He is entitled to transport allowance of Rs. 6,000 p.m.
He spends Rs. 4,000 every month. The exemption shall be:​

Answer 1

Answer:

Explanation:

As per the provisions of the Income Tax Act 1961

(A) Rs 10000 per month

            or

(B) 70% of the amount received per month

whichever is less

so in this case the exemption will be Rs 6000 per month