Dear Every One ,
I want to know ont thing that can company provide the Convyance Allownces to the Employee more than 800. P.M. or reimbers that expense or charge as perk and going to pay FBT to the government
Thakkar Hiren C (Sr Accountant ) (118 Points)
07 May 2009Dear Every One ,
I want to know ont thing that can company provide the Convyance Allownces to the Employee more than 800. P.M. or reimbers that expense or charge as perk and going to pay FBT to the government
VIPUL BUBNA
(MANAGER TAXATION)
(119 Points)
Replied 07 May 2009
Company can pay conveyance allowance more than Rs.800 but the deduction available to employees will be restricted to Rs.800 and anything above Rs.800 will be taxable in the hands of employee and NO FBT is payable on Conveyance Allowance as it is part of salary and taxable in the hands of employee.
Reimbursement of Conveyance Expense is not taxable in the hands of employee and same is liable for FBT in the hands of company.
Thakkar Hiren C
(Sr Accountant )
(118 Points)
Replied 07 May 2009
Thanks Vipul,
One more thing i ask to you that if employee reimbers the Convyance allowances to company tha reimbersment amount show in the 12BA Form at the time of the 16 Form as perk?
VIPUL BUBNA
(MANAGER TAXATION)
(119 Points)
Replied 07 May 2009
If the company is reimbursing the conveyance expense it is not reflected in Form 16 as it is not the part of salary , but if the company is paying Conveyance alloance it is reflected in Form 16
Thakkar Hiren C
(Sr Accountant )
(118 Points)
Replied 07 May 2009
i got it but if i reimbersment that expenses then it will discribe in 12 BA form and if i that amount shown as reimbersment then it is seprate deposited in the Employee bank account as head of reimbersement amount ?
mradul
(student)
(38 Points)
Replied 07 May 2009
wht vipul said is correct if the conveyance allowance is reimbursed thn it is not taxable at the hands of the employee
shammi
(student)
(42 Points)
Replied 08 May 2009
hello mr thakkar
the company can give any amount to employee as conveyance allowance there is no restrictions but amount saved by the employee will become taxable in the hands of employee.
and there is a diff b/w conveyance allowance and transport allowance. in transport allowance Rs. 800 pm exemption is given to ordinary person n 1600 Rs. to blind or handicapped person not in the case of conveyance allowance
i m sure that vipul is not correct.
vijay
(.)
(212 Points)
Replied 08 May 2009
Mr.Vipul,
I am agree with Shammi. There is no restriction on claimining conveyance allowance if they have been actually incurrred. The ceiling of Rs. 800 which is discuused above is for Transport allowance. and it extends to Rs. 1600 for blind and handicapped persons as Shammi has written above.
Regars
Vijay Kumar
VIVEK ANAND T N
(COMPANY SECRETARY & CHARTERED ACCOUNTANT)
(29 Points)
Replied 08 May 2009
Dear Vijay,
You have mentoined in your reply - " there is no restriction on claiming the conveyance allowance" , but it all depends on the Employee salary in what nomenclature it is given.
Almost all the companies use as conveyance allowance and claim Rs. 800/1600 as deduction, what Ms. Shammi is referring. But we should interpret and use only those language what department intends, it should be actually Transport Allowance and not Conveyance Allowance.
Kindly give your feedback pls.
Vivek
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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