Fixed conveyance is taxable

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musabbir (Querist)
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29 May 2017
Conveyance paid to Contractual Staff?

If we paid fixed Conveyance is taxable ?
If we paid Conveyance reimbursement upto 1000 on actuals is taxable?

Adv. RAVINDRA KRISHNA

Adv. RAVINDRA KRISHNA (Expert)
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29 May 2017 Conveyance allowance, also called Transport Allowance is a type of allowance offered to employees of a company to compensate for their travel from residence to and from respective workplace location. Allowances are generally offered to employees on top of their basic salary component and may or may not be taxable as per the Income Tax Act.
In general, conveyance allowance is paid by an employer only if the there is no transportation provided by the employer. In case an employer offers office transport, conveyance allowance will not be provided to employees.
Conveyance allowance is given an exemption of up to Rs.19,200 per annum or Rs.1,600 per month. The sections under which this exemption is applicable are Section 10(14)(ii) of Income Tax Act and Rule 2BB of Income Tax Rules.