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Income from salary

Tejas Jasoriya (CPT clear) (284 Points)

28 September 2015

Is conveyance allowance given by company towards actually reimbursement exempt??How

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CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 28 September 2015

Transport allowance exemption limit for employees is increased from Rs. 800 to Rs. 1,600 per month. In case the employee is blind or orthopaedically handicapped with disability of lower extremities the limit is increased from Rs. 1600 to Rs. 3200/- per Month. The revised exemption Limit is applicable from A.Y. 2016/17 /F.Y 2015-16 -

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Tejas Jasoriya (CPT clear) (284 Points)
Replied 28 September 2015

Sir My doubt is regarding coveyance allowance and not transport allowance of Rule 2BB(2)

Miss Rinkal (Student) (1309 Points)
Replied 28 September 2015

Firstly you are asking about allowance or reimbursement. If it is allowance then it can be called by any name such as transport, travelling or conveyance. All are one and the same and covered by Rule 2BB. AND if it is a reimbursement then there is no question of getting taxed and no reason for exemption

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 28 September 2015

Agree with Rinkal

Tejas Jasoriya (CPT clear) (284 Points)
Replied 28 September 2015

Hi Rinkal....can u plse tell then what is the difference between conveyance allowance in rule 2BB(1) and Rule 2BB(2)..

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Miss Rinkal (Student) (1309 Points)
Replied 29 September 2015

Rule 2BB (1) is in reference to expenses wholly and exclusively incurred in the performance of duties of employment. For eg: You incurred travelling expenses on foreign delegates for the purpose of your company or you had to travel at a particular place for the reason of the project. These are the cases of reimbursement and covered under Rule 2BB(1) and hence entire amt is exempted. However Rule 2BB(2), is in reference with personal expenses incurred. For eg Expenses paid for travelling from your home to the company or to and fro.