Public transport is an excellent mode of transportation, and it has a number of advantages. It is not only beneficial for the environment but also for the economy. Public transport is affordable, eco-friendly, and convenient for busy people. However, many people don’t know whether they can claim public transport on tax or not.
You can claim your journey costs on your taxes if you travel by public transport. However, there is a catch. You have to prove that you were traveling by public transport.
Whether you paid for your ticket or used public transport doesn’t matter.
It’s just about proving that you were traveling by public transport. If you are driving, you can’t claim the expenses on your taxes.
If you are a student living in a city, you will see excellent public transport facilities Or if you are studying at a reputed university, you will get cheap and reliable transport.
But you will get the basic public transport facilities when you are living in a small town and if you are not going to a reputed college. There is no guarantee that you will get a bus or train; the only option is a taxi.
The question is can you claim the public transport expenses on tax? If you have a doubt, then let me clear it with you.
Public transport is defined as the means of conveyance that is available for general use. The primary purpose of public transport is to connect people to places.
In this case, the government provides transport, and the company is a private company.
Taxes are the fees that the government collects. These taxes are used to pay for the services that the government provides to the people.
- The government collects these taxes in two ways.
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1. Direct Taxes:
Direct taxes are those that are directly collected from the people.
2. Indirect Taxes:
Indirect taxes are those that are collected from people and companies.
Now the question is can you claim the public transport expenses on tax?
- Yes, you can.
It depends on your income and the type of vehicle you are using.
- You can claim the total amount if you earn a monthly income of more than Rs. 6,000.
- If you earn a monthly income of Rs. 2,000 to Rs. 5,000, you can claim Rs. 1,500.
- If you earn a monthly income of Rs. 1,000 to Rs. 2,000, you can claim Rs. 1,000.
- You cannot claim any tax deduction if you earn a monthly income of less than Rs. 1,000.
Now Let us understand the tax structure first.
1. Income Tax:
Income tax is a tax that is collected from the individual or the company.
2. Capital Gains Tax:
Capital gains tax is a tax collected from the sale of a property.
3. Corporation Tax:
A corporation tax is a tax that is collected from a company.
4. Excise Duty:
Excise duty is a tax that is collected from goods and products.
5. Sales Tax:
Sales tax is a tax collected from the sale of goods and services.
6. Goods and Services Tax:
A goods and services tax is a tax that is collected from the goods and services.
7. Import Tax:
Import tax is a tax that is collected from the import of goods.
8. Value Added Tax:
Value-added tax is a tax that is collected from the production of goods.
9. National Insurance:
National insurance is a tax that is collected from employees.
10. Customs Duties:
Customs duties are a tax collected from the goods and products imported into the country.
Cess is a tax that is collected from petrol and diesel.
12. Stamp Duty:
Stamp duty is a tax collected from the sale of a property.
13. Inheritance Tax:
Inheritance tax is a tax that is collected from the estate of the deceased.
14. Land Tax:
Land tax is a tax that is collected from the land.
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5 Ways To Claim Public Transport On Tax
Tax is one of the most common topics we must pay while living in the country. So, let us talk about the tax on public transport.
Suppose you are a student and need to travel to the university. In that case, you will need to pay the bus fare and be charged a tax.
As per the current government policy, you can claim a tax of Rs 50 per day for public transport. If you travel more than 1 kilometer, you will be charged a flat rate of Rs 100 per day.
However, there are certain cases when you are charged a higher tax.
- Here are the situations when you will be charged a higher tax.
- If you travel in an air-conditioned bus or van, you will be charged a tax of Rs 300 per day.
- If you are traveling with a family, you will be charged a tax of Rs 200 per day.
- If you travel by train, you will be charged a tax of Rs 500 per day.
- If you travel in a luxury vehicle like a bus or an AC bus, you will be charged a tax of Rs 500 per day.
- If you are traveling by ferry, you can claim the expenses as an expense.
- If you are traveling by taxi, you can claim the expenses as a deduction on your income tax.
- If you travel by any means of transport, you can claim the expenses as a deduction on your income tax.
The answer is yes if you’re wondering whether you can claim public transport. But it’s essential to know the rules and regulations surrounding this expense.
If you use public transport to get to work, you can claim this on your taxes. The key is to record all your trips and prove how much you used public transport. You can use the receipts to show this. Make sure you keep your receipts safe and do not forget any receipts.
No specific rules determine who can or cannot claim a public transport subsidy. The only requirement is that the taxpayer must be eligible for the concession.