What is the rule for structuring part of your salary to be paid as a conveyance/transport allowance of Rs. 800 per month (Rs. 9600 per year), which is exempt from tax and no bills need to be provided? Do I have to own a vehicle? What if I live on campus? Am I still eligible to receive the conveyance allowance tax-free?
In general, conveyance or transport allowances provided by an employer are intended to cover the costs of commuting between your residence and your workplace. The exemption for conveyance allowance is available regardless of whether you own a vehicle or not. If you live on campus and do not incur any commuting costs, you may still be eligible to receive the conveyance allowance tax-free, as long as it is a part of your salary structure and within the exempt limit set by tax regulations.
It's important to review the specific guidelines provided by the tax authorities in your jurisdiction to ensure compliance with the tax laws regarding conveyance allowances.
In general, conveyance or transport allowances provided by an employer are intended to cover the costs of commuting between your residence and your workplace. The exemption for conveyance allowance is available regardless of whether you own a vehicle or not. If you live on campus and do not incur any commuting costs, you may still be eligible to receive the conveyance allowance tax-free, as long as it is a part of your salary structure and within the exempt limit set by tax regulations.
It's important to review the specific guidelines provided by the tax authorities in your jurisdiction to ensure compliance with the tax laws regarding conveyance allowances.