Understanding Conveyance Allowance: How Much Can Be Non-Taxable in My Friend's Job Offer?

Hi Everyone,

My friend has received a job offer from a company where the basic salary is 20,000/-, HRA is 2,200/-, and conveyance allowance is 27,800/-. With this salary structure, he feels he may need to pay more income tax. When he asked the employer why the HRA is less and the conveyance allowance is more, he was informed that they may provide accommodation in the future.

Could you please advise on the maximum non-taxable amount for Conveyance allowance?

Looking forward to your reply.

Sandhya

If he owns a car in his name and uses it for official conveyance, he can get an exemption up to Rs. 20,000 towards fuel and maintenance charges subject to the submission of bills.