sandhyavinod Started The Discussion:
Non taxable limit for Conveyance Allowance
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
Dear Sandhya, Your structure of salary break up is incorrect. the exemption limit on conveyance is 9600/- per annum. sanjeev
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.
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
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