15 December 2013
UNDER SEC 10 OF INCOME TAX ACT, ARE TRANSPORT ALLOWANCE AND CONVEYANCE ALLOWANCE ARE SAME.
IF SO WHY THERE IS DIFFERENCE IN THE EXEMPTION UNDER SEC 10.
AN EMPLOYEE IS PAID "CONVEYANE ALLOWANCE" OF RS 3000/-PER MONTH TOTALLING TO RS 36000/- PER YEAR, WILL HE WILL GET EXEMPTION UNDER CONVEYANCE ALLOWANCE (MORE THAT 1600CC VEHCILE ETC) OR CAN HE CLAIM "TRANSPORT ALLOWANCE" AT THE RATE OF RS 800 PER MONTH I.E. RS 9600/-PER YEAR.
31 December 2013
There is no circumstance and under Income Tax Act the Conveyance Allowance is paid by the employer.
Only Conveyance Allowance is paid every month at the rate of Rs 3000/=per month.
Whether rebate of Rs 800/=per month i.e. Rs 9600/=per year will be available even if Rs 3000/- is paid PER MONTH as CONVEYANCE ALLOWANCE by the EMPLOYER.
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