Non taxable limit for Conveyance Allowance - salary structure

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


sandhyavinod -  Member Since: Nov 2007
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

Sandhya -  Member Since: Apr 2009
Dear Sandhya, Your structure of salary break up is incorrect. the exemption limit on conveyance is 9600/- per annum. sanjeev

Vasant Nair -  Member Since: Jul 2009
Only Rs.800/- per mensem is allowed as non taxable Conveyance Allowance. The excess amount will be treated as taxable income. Vasant Nair

poonam.gandhi -  Member Since: Mar 2010
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.


Siji_joy -  Member Since: Dec 2010
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. Join us to learn and grow with your peers.
File Type: pdf PwC News Alert - 19 December, 2009 - Revised valuation rules for perquisites.pdf (69.4 KB, 583 views)
yogeshsalvi -  Member Since: Apr 2009
if we have paid rs.652/-pm as a conveyance allowance then how should i exempt from his form 16?


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