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Conveyance allowance

07 February 2018

Will the standard deduction amended in budget 2018 impact the exemption provided to disabled employees under conveyance allowance? if I combine the conveyance allowance and medical reimbursement.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (172434 Points)
Replied 08 February 2018

The transport allowance at enhanced rate shall continue to be available to differently-abled persons.

Also other medical reimbursement benefits in case of hospitalization etc., for all employees shall continue.

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Amanullah Kaleel (48 Points)
Replied 08 February 2018

Thanks! But still not clear, currently they are availing the maximum benefit up to Rs. 38400 under conveyance allowance, also medical reimbursement upto 15K seperately. As per my understanding the standard deduction going to replace these benefits so, it a loss to disabled employees. please correct me if I am wrong.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (172434 Points)
Replied 08 February 2018

For differently abled assessee the budget proposal (effective AY 2019-20 onwards) the transportation allowance of Rs. 38400/- remains intact. But the Rs.15000/- medical allowance will be replaced with Rs. 40000/- standard deduction...... thereby net benefit of 25K........