State which of the following is a taxable allowance and the quantum of allowance liable to tax in the hands of salaried employees: Transport allowance given by a company (home to office and back) ₹ 2,000 per month.

Transport allowance given by the company i.e. employer (for commuting home to office and back) to the employees is exempt upto ₹1,600 per month (₹3,200 pm in special cases i.e. Employee is Blind, Handicapped, Deaf or Dumb). Option 1: Employee is not covered under special cases: Remaining amount i.e. ₹400 per month (₹2,000 – ₹1,600) is taxable under the head of salaries. Option 2: Employee is covered under special cases: Nothing is taxable under the head of salaries as full amount of ₹2,000 is exempt from tax.