CONVEYANCE ALLOWANCE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2010 Every time I am in confuse about conveyance allowance and transfport allowance. I would like to know how much conveyance amount exempt from tax in the hands of salary employees, and what are the ducuments required for claiming conveyance expemption.

for ex: Conveyance amount received by employee from the employer is Rs. 6500/- PM.

in the above situation what is the expempted amount? is fully exempt or Rs. 800/- PM

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 October 2010 Transport allowance is exempted Rs.800 per month

Conveyance allowance is exempted only up to the offical usage, balance is taxable

refer circulars:
Circular : No. 764, dated 20-2-1998.

Circular: No. 196 [F. No. 275/29/76-ITJ], dated 31-3-1976.