Conveyance Allowance - Salary Allowance

What is the rule for structuring part of your salary to be a paid as a conveyance/transport allowance of Rs. 800 per month (Rs. 9600 per year), which is exempt from tax and no bills need 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?

YES. This 9600/- is considered towards your attending office - wherever you stay. Salaried people are having very less exemptions like this. Hence please do keep enjoying without question.