Amit jha (Sr. Officer (Finance & Accounts)) (309 Points)
18 October 2011One of our employees uses motorcycle to come to office and for moving around for work related activities. Can he claim a higher conveyance allowance than800 per month? If Yes, how much more can he claim as conveyance allowance? How much can he claim as maintenance allowance?
and what is the maximum limit?
Amit jha
(Sr. Officer (Finance & Accounts))
(309 Points)
Replied 18 October 2011
is there any one to help me? please
CA VISHAL RANA,CS,B.Com,AMFI
(Chartered Accountant in Whole Time Practice)
(4354 Points)
Replied 18 October 2011
NO LIMIT FOR CONVEYANCE ALLOWANCE IN THE ACT...CONVEYANCE ALLOWANCES ALLOWED UPTO THE ACTUAL INCURRED..
Amit jha
(Sr. Officer (Finance & Accounts))
(309 Points)
Replied 18 October 2011
hi please help me about earlier post please
CA VISHAL RANA,CS,B.Com,AMFI
(Chartered Accountant in Whole Time Practice)
(4354 Points)
Replied 18 October 2011
ya amit ask your query
valji
(Accounts manager-MBA)
(2150 Points)
Replied 18 October 2011
THERE IS DIFFREANCE BETWEEN ALLOWANCE & EXPENSES
CONVAYANCE ALLOWANCE LIMIT IS 800 P.M
BUT YOU CAN CLIAM CONVAYANCE EXPENSES ANY AMOUNTS (ACTUAL SPEND) BY PROVIDING SUPPORTING FOR EG MOTOR VEHICLE PETROL BILL
Phalgun
(Audit Manager)
(327 Points)
Replied 18 October 2011
As per section 10(14) of the income tax act 1961, following are the allowances allowed on the Least of actual receipt or actual incurred basis :
a)Helper Allowance b)Research & Academic allowance c)Travelling allowance d)Conveyance allowance e)Uniform allowance f)Daily allowance
Basis : No fixed amount as limit is defined for the above allowances as exempt. It is exempt as least of actual expenses received or actual expenses incurred .
so here if your employee 's actual expenses is less than allowance received i.e 800 then actual expenses is taken for exemption,otherwise the actual received.
Vehicle Maintenance allowance is not exempt.
Ashutosh Biswal
(Asst.Manager Finance)
(283 Points)
Replied 18 October 2011
@ Amit
Your consideration should be as reimbursement instead of allowances ..
In case of allowances ( which are shown in salary slip ) it can't be more than Rs 800
in case reimbursement , it can be gone up to any limit with putting proper bill of petrol/diesel
Form maintenance purpose.. prepare a SOP in ur organisation regarding the maintenance exp comapring with running of vehicle (which should be clubbed with oil expenses in per km) and that should be reimbursed in proper format of claim by employees.
CA Ankur Mittal
(Assistant Manager @ Reliance Communication)
(759 Points)
Replied 18 October 2011
There is difference b/w allowance and reimbursement...if its a reimbursement then there is no limit..but for allowance exampt upto rs 800 p/m
agree with ashutosh view
Phalgun
(Audit Manager)
(327 Points)
Replied 18 October 2011
Transport expenses exempt upto Rs.800 pm for commuting between place of residence & duty.
Conveyance allowance is given for expenses incurred in performance of official duty. Then here as per query it says coming to office & office related activity then it should be least of actual received or incurred na ?
Manish Garg
(ARTICLE ASSISTANT)
(22 Points)
Replied 19 June 2012
an employer has paid 30 % of the basic salary of employee as a conveyance allowance?
Is it fully exempt or taxable?
Manish Garg
(ARTICLE ASSISTANT)
(22 Points)
Replied 19 June 2012
an employer has paid 30 % of the basic salary of employee as a conveyance allowance?
Is it fully exempt or taxable?
Sandeep Jadhav
(Bcom ITP STP ITRPS STRPS CS CA FINAL)
(1092 Points)
Replied 08 February 2015
There differnce in Reimbursement (Expenses) and Allowances. The assessee can claim Rs. 800 p.m. Yearly Rs.9600 as Conveyance Allowance as per section 10 (14). And conveyance Reimbursement or Expenses can claim from Employer as per actual expenses incurred. So please keep in mind about the reimbursement and Allowances.
If you get salary as per below
Basic 10000p.m.
Conveyance 2000p.m.
DA 5000 p.m.
HRA 7000 P.M
TOTAL SALARY RS. 24000P.M.
Then you can claim in only Rs. 800 p.m. as deduction as per Income Tax Act and Balance Rs. 1200p.m.(Rs. 2000-Rs800) is Taxable.
but in case of Conveyance Expenses / Reimbursement it can be claim as per actual incurred. ok..... I think you get your answer..
CAclubindia
