Conveyance allowance
This query is : Resolved
18 June 2010
1 What is the diffrence between,Conveyance allowance and transport allowance given by employer?
2 Can both be availed at a same time?
3 What is the tax benefit?
4 can employee avail car facity and transport allowance facility at a same time?
Please clarify.
2 Can both be availed at a same time?
3 What is the tax benefit?
4 can employee avail car facity and transport allowance facility at a same time?
Please clarify.
18 June 2010
Hi Rama,
I think 1) The both are same - only difference is how we call it.
2)Generally different pay heads are used in pay structure as there is no point to give same type of allowances.
3)The deduction for the same is Rs. 800 per month for transport/conveyance allowance, so if the amount is more, then the excess portion is taxable.
4)There is no pronouncement that an employee should not get car facility along with conveyance/transport allowance. But it's not logical to me to allow such practice. Enjoying car facility is also taxable for tax paying employees if the car is not used wholly for official purpose(as perquisite) .
car facility between office and residence is tax free and aforesaid Conveyance/transport allowance is also given for the same purpose.
Regards Sanjay
I think 1) The both are same - only difference is how we call it.
2)Generally different pay heads are used in pay structure as there is no point to give same type of allowances.
3)The deduction for the same is Rs. 800 per month for transport/conveyance allowance, so if the amount is more, then the excess portion is taxable.
4)There is no pronouncement that an employee should not get car facility along with conveyance/transport allowance. But it's not logical to me to allow such practice. Enjoying car facility is also taxable for tax paying employees if the car is not used wholly for official purpose(as perquisite) .
car facility between office and residence is tax free and aforesaid Conveyance/transport allowance is also given for the same purpose.
Regards Sanjay
18 June 2010
Conveyance allowance is normal conveyance to the employees for doing offical duties during the work which is exempted up to the offical usage
Transport allowance specifically given for the purpose of Resident to office transportation which is exempted Rs.800 per month
There is no restriction for claiming the conveyance and transport allowance same time only condition conveyance offical purpose need to be justifed
Transport allowance specifically given for the purpose of Resident to office transportation which is exempted Rs.800 per month
There is no restriction for claiming the conveyance and transport allowance same time only condition conveyance offical purpose need to be justifed
18 June 2010
Thanks Ramesh for correcting me about Conveyance allowance which is exempted on the basis of actual expenses incurred on official duty.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
