11 September 2010
I AM RECEIVING CAR REIMBURSEMENT (Rs.120000 / ANNUAL ) AS WELL AS CONVEYANCE ALLOWANCE (Rs. 800 / MONTH ).HOWEVER COMPANY IS DENYING EXEMPTION ON BOTH SIMULTANEOUSLY.EVERY YEAR I PROVIDE BILLS FOR MY CAR REIMBURSEMENT.COMPANY SAID THEY ARE EXEMPTING ONLY CAR REIMBURSEMENT & DEDUCTING TAX ACCORDINGLY.WHAT ACT SAYS IN THIS MATTER.PLEASE HELP..
11 September 2010
your employer is right, Car reimbursement exemption as per Perqusite valuation rules, conveyance allowance is taxable while you are receving car reimbursment
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