16
Dear CITE HR Team, Tax imposed on Conveyance Allowance. So if you want to make a salary component then it should be assure that "Conveyance Allowance" should be fixedup or less than 800/-.
From India, Lucknow
From India, Lucknow
Dear Anu,
Yes. Conveyance allowance is exempted from IT upto a max of Rs.800/- p.m. So you can fix upto Rs.800/-.
I am giving below the practice which I have implemented in my organisation.
1. HRA - Exemptions to be given as per IT act (which you must be aware. Otherwise, I will help you to update). If the employee is paying rent, he has to produce the rent receipt. If the employee is staying in his own house or if he can't product the rent receipt, we can't allow exemption.
2. Conveyance - as given above
3. LTA - Exempted from tax if claimed twice in a block of 4 years, subject to producing valid bills to support the claims.
4. Medical expenes - allowed as per IT Act.
5. Food coupons - fully exempted from IT of FBT upto a certain limit.
Regards
BHAVAN
From India, Bangalore
Yes. Conveyance allowance is exempted from IT upto a max of Rs.800/- p.m. So you can fix upto Rs.800/-.
I am giving below the practice which I have implemented in my organisation.
1. HRA - Exemptions to be given as per IT act (which you must be aware. Otherwise, I will help you to update). If the employee is paying rent, he has to produce the rent receipt. If the employee is staying in his own house or if he can't product the rent receipt, we can't allow exemption.
2. Conveyance - as given above
3. LTA - Exempted from tax if claimed twice in a block of 4 years, subject to producing valid bills to support the claims.
4. Medical expenes - allowed as per IT Act.
5. Food coupons - fully exempted from IT of FBT upto a certain limit.
Regards
BHAVAN
From India, Bangalore
Hi
I have question related to the tax exemption.
What is "other Allownce category" in the salary brek up.IS it fully exempted from tax.
My Manager ctc is 7.2Lac pa. & he gets "other Allowances-Driver Salary,Books Purchased & Seminars".
I want to know what all we is included in other allowance & is this is exempted fully?
Regards,
From India, Delhi
I have question related to the tax exemption.
What is "other Allownce category" in the salary brek up.IS it fully exempted from tax.
My Manager ctc is 7.2Lac pa. & he gets "other Allowances-Driver Salary,Books Purchased & Seminars".
I want to know what all we is included in other allowance & is this is exempted fully?
Regards,
From India, Delhi
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.
#Subject List: tax exemption food coupons City-India-Pune Country-India
SALARY CALCULATOR & INCOME TAX.zip
SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Salary less tax - CTC.xls
