Conveyance, Uniform & Allowance Exemptions Under Section 10(14)
Last verified: June 2026, against the Income Tax Act and Budget 2025 provisions cited below. Figures apply to FY 2025-26 (AY 2026-27). General information, not personal tax advice.
Many salary components — conveyance, uniform, travel — can be received tax-free, within limits, under Section 10(14). Helpfully, a specific set of these survive even under the new tax regime. Here is what is exempt and by how much.
Allowances exempt under Section 10(14)
- Conveyance allowance: exempt to the extent actually spent on travel for performing office duties.
- Uniform allowance: exempt to the extent spent on buying/maintaining a uniform required for duty.
- Travel / transfer allowance: exempt to the extent spent on official tour or transfer (travel and packing).
- Daily allowance: exempt to the extent spent to meet ordinary daily charges on tour/transfer.
- Helper, academic/research and similar allowances: exempt to the extent spent for the specified purpose.
- Transport allowance for specially-abled (divyang) employees: exempt up to ₹3,200 per month.
What changed: the general transport allowance
The old ₹1,600/month general transport allowance (for commuting) was subsumed into the standard deduction in 2018, so it is no longer claimed separately. The ₹3,200/month transport allowance for specially-abled employees, however, continues.
These survive the new regime
Under the new regime most exemptions are gone, but a specific group of Section 10(14) allowances is retained: conveyance for office duty, travel/tour/transfer allowance, daily allowance, and the transport allowance for specially-abled employees. So even on the default regime, genuine duty-related reimbursements can stay tax-free. See deductions allowed under the new regime.
Keep proof
These exemptions are tied to actual spending for the specified purpose — keep bills/records, as the exemption is only to the extent the allowance is genuinely used.
Higher limits for children’s allowances from 2026-27
The Income-tax Rules, 2026 sharply raised two long-frozen exemptions for the old regime: children education allowance from ₹100 to ₹3,000 a month per child, and hostel expenditure allowance from ₹300 to ₹9,000 a month per child, for up to two children, from tax year 2026-27. For a family with two children in hostels, the combined exemption can now reach ₹2.88 lakh a year. Check that your employer has restructured the salary to pay these as separate allowances.
Worked example (old regime)
An employee receives ₹2,000 a month as uniform allowance, spends ₹18,000 a year on uniforms with bills, and claims children education allowance for two children. Exempt: uniform ₹18,000 (actual spend, not the full ₹24,000) plus education allowance ₹72,000. Taxable salary falls by ₹90,000, saving about ₹28,000 at the 30% slab including cess.
Common mistakes
- Claiming the full allowance instead of the actual amount spent where the exemption is “to the extent spent”.
- Expecting these exemptions under the new regime — only the specific ones noted above survive there.
- Not keeping bills: employers may accept a declaration, but the tax department can ask for proof later.
What changes under the Income-tax Act, 2025
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Returns for FY 2025-26 (AY 2026-27) are still filed under the old Act, old section numbers and old forms. From tax year 2026-27 onwards, section numbers and many form numbers change — for example, Form 16 becomes Form 130, Forms 15G/15H merge into Form 121, Form 26QB becomes part of Form 141 and Form 10E becomes Form 39. The underlying rules discussed here were largely carried over; only the references change.
FAQs
Has the children education allowance limit changed?
Yes. Under the Income-tax Rules, 2026 it is ₹3,000 a month per child (maximum two children) from tax year 2026-27, available only in the old regime.
Is conveyance allowance tax-free?
Yes, to the extent it is actually spent on travel to perform office duties, under Section 10(14).
Do these allowances work under the new regime?
A specific set does — conveyance for duty, travel/tour/transfer, daily allowance, and transport allowance for specially-abled employees.
What happened to the ₹1,600 transport allowance?
It was merged into the standard deduction in 2018 and is no longer claimed separately.
How much is the transport allowance for disabled employees?
Up to ₹3,200 per month, and it continues under both regimes.
