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.
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
CAclubindia
