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Asso.prof.(commerce & Management)
Hopegovind
Senior Hr Advisor And Blogger
RAMAKANT R
Primus Techsystem
+1 Other

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Dear All
Need support to understand and comprehend the IT norms on Local Cony and the Vehicle maintenance
i.e.
1. Can an employee claim local conveyance for customer meeting / official works etc.
2. The concern here is that our company has a policy to offer Vehicle allowance i.e Car hire and Maintenance.
Regards
JB 001

From India, Thane
Dear JB001.
Local Conveyance - as per IT Act Rs.800.00 per month exempted from total income reason for this is Traveling Allowance for Reaching Office - for this no supporting is required entire amount of Rs.9,600 (for 12 months) will be reduced from Total Income.
You are talking about "claim local conveyance for customer meeting / official works etc."
For the benefit of Employee please treat this as Traveling Reimbursement - The reimbursement of Traveling Expenses for performing office duties. Hence it will never been taxable in the hands of Employee.
Ramakant

From India, Pune
Hi,
in addition to reply of Ramakant, please note that
If employee use company provided or owned car, they can claim 1800 per month towards maintenance of the vehcile upto 1.6 cubic ton cpacity and 2400 for above 1.6 cubic ton capacity and this is tax exempted

From India, Mumbai
Jb001,
You are also talking about "Car hire & maintenance", what does't mean, you can hire a cab and get it reimbursed ? Fine, this will be totally tax free as this cannot be taken into your "perquisites" and you are safe. Generally 'reimbursement' mode is always safe and mostly tax free except where higher ceiling is prescribed under IT act such as Conveyance allw. Any allowance paid in the form of salary comes with taxable portion as well.

From India, Bangalore
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