Human Resources
Rajat Joshi
Hr Consulting ,trainer -creative Thinking
Hr Professional
+1 Other

Hi Folks,
I would like to know at what rate does IT companies in Pune pay Local Travel Reimbursement and their Policies for sales and BDM employees.
I would appreciate if you would tell me what policies you have in your company..

From India, Pune
Hi Anu,
I am from an Insurance company and I have given below in brief the policy we have in our company and the policy is the same across India.
Local Conveyance Policy
Currently 50% of an employee's basic pay is for conveyance allownce. This is to enable for an employee to commute between office and home and will be paid montly ( part of the CTC)
In addition field staffs are paid Rs 2000/- per month to cover work related conveyance expense.
As a field staff in addition he / she will be paid Rs 2.50 for 2 wheeler and Rs 4 for Four wheeler or actual auto / taxi expenses.
An employee can claim these reimbursements on a fortnightly basis. These claims needs to be approved by the Stream leader.
Hope it might be usefull.

From India, Madras
Hi Antony,

Was just going through your response to Anuradha's query and since am in the midst of restructuring the salaries of Sr Managers & above so i felt that something was amiss..

If conveyance is the part of the salary then the maximum amount for conveyance allowable is Rs 800/ per month as per the IT rules. If it exceeds this it would be treated as taxable perquisite..

This is fine and please ensure that those who have been the vehicles by the company are not entitled to Rs 800/m.

Rs 4/ km sure it's due for revision on account of sky rocketing price rise of fuel..

Secondly the detailed documentation is required as mentioned below viz:


For claiming higher amount of official use in respect of reimbursement of car expenses or wholly official use of car provided by an employer, the following details and documents need to be maintained:-

i) the employer has maintained complete details of journeys undertaken for official purpose which may include date of journey, destination, mileage and the amount of expenditure incurred thereon;

ii) the employee gives a certificate that the expenditure on claimed trips was incurred wholly and exclusively for the performance of his official duty;

iii) the supervising authority of the employee, wherever applicable, gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.



From India, Pune
Hi Rajat,
Thanks for your info., Currently we have a Local Travel Policy and a Domestic Travel Policy. In our Local Travel Policy those who come under car scheme will not have the conveyance allowance of 50% of the basic + 2000 and instead they will be paid the emi for the car and the actual petrol expenses which are tax exempted.
We analyzed and found that rs 4 /Km is a reasonable amount and are paid more than the actual expense they can incur.

From India, Madras
Hi Guys
I am slightly confused on this, so please bear with me and help me clarify my doubts:
As Rajat rightly pointed out, that conveyance allowance that is part of salary should not exceed 800/- pm else it will be taxable. Then again 2000/- is being given for official conveyance expenses and then Rs 4/km etc 4 wheelers ... Can you please elaborate on which grades which heads of expenses are applicable because all cannot be applicable at the same time (I assume - correct me on that as well if I am wrong)
Pardon me , if the query sounds foolish, but I wanted to clarify it rather carry around a clouded information.

From India, Delhi
Hi Pooja
As per our company policy we are paying 50% of basic as conveyance which is taxable, in addition only our Sales & Marketing force will be paid 2000Rs which is also taxable. Those who are coming under car scheme will have the conveyance allowance as nill.
If it is not clear, let me know.

From India, Madras
Conveyance is taxable above Rs.800 / PM provided conveyance is for home to office. but for sales employees conveyance is exempt for official duties and it is taxable in the hands of employer i.e FBT
From India, New Delhi
Dear Friends,
We are a non profit organization.
We want to know about travel policy for support staff for non profit organization.
Also please provide the telephone Reimbursement Policy
Thanks n regards

From India, Lucknow
Can anyone help me frame Fuel allowance policy for sales employees? Details on per km allowance.
From India, Madras
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