sandhyavinod Started The Discussion:
Non taxable limit for Conveyance Allowance

Hi Everyone,

My friend has got a job offer from company where basic is 20000/, hra is 2200/ and conveyance allowance is 27800/ . With this salary structure he feels he needs to pay more income tax. when he told employer that why hra is less and conveyance allowance is more he was told by employer said they may provide accomdation in future.
So what is maximum non taxable amount for Conveyance allowance.

Waiting for reply

Non taxable limit for Conveyance Allowance

Hi ,

I know that non taxable limit for Conveyance allowance is 800 without producing any bill or proof.

But what will be the non taxable limit for Conveyance allowance if we produce bills or use our vehicle for conveyance

Waiting for reply

Dear Sandhya, Your structure of salary break up is incorrect. the exemption limit on conveyance is 9600/- per annum. sanjeev
Only Rs.800/- per mensem is allowed as non taxable Conveyance Allowance. The excess amount will be treated as taxable income. Vasant Nair
Dear Sandhya

The answer of your question is well answered as 800 P.M./ 9600 P.A. Well please be note the employer can pay any sum on account of Conveyance reimbursement for which you will have to attached the proper bill to claim this benefit as being offered by most of the companies now a days. I agree this amount should not be shown as Allowance in the Offer letter, the right way to communicate this is Conveyance reimbursement.

Dear Sandhya,

Conveyance exemption for individual is 800p.m , and incase of handicapped individual it is 1600p.m.
In regards to vehicle reimbursement, there are different types of vehicle reimbursement provided under perquisite.
ie Employee owned car/Employer owned car and criteria of fully/partial use for self and employer etc. The valuation of perquisite depend on the CC of the engine. if it is below 1.6cc then 1800p.m (extra 900 for chauffeur ) is allowed, and incase it exceed 1.6cc then 2400pm(extra 900 for chauffeur).

The detailed perquisite rule is attaching for your reference

Attached FilesProvided by community member Siji_joy. Register to join your network of peers.
File Type: pdf PwC News Alert - 19 December, 2009 - Revised valuation rules for perquisites.pdf (69.4 KB, 846 views)
if we have paid rs.652/-pm as a conveyance allowance then how should i exempt from his form 16?
Dear Ms Sandya,

The answer of your question is well answered as 1,600 P.M./ 19,200 P.A. Well please be note the employer can pay any sum on account of Conveyance This will effect from 1st April 2015. announced by Central Govt. of India.

Conveyance Allowance has been revised to 1,600/- from existing 800/- per/month



Found This Useful? +Vote Up This Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.

About Us - Advertise - Contact Us - RSS   On Google+  
Copyright 2016 Cite.Communities (CiteHR.Com) User contributions are owned by the contributor.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network