Difference Between Conveyance Allowance And Cca

What is the difference between conveyance allowance and CCA? Is there any difference? If my basic salary is Rs. 9850, how much will be the conveyance allowance and CCA?

Thanks & Regards,
Lucky

What you are mentioning is two different things. If I get the acronym right, CCA stands for City Compensatory Allowance that can be disbursed through Special Allowance or can be a header in your Salary items. Such an allowance would make sense for an organization having offices and functions demarked clearly between rural and urban centers.

Conveyance allowance is non-taxable up to Rs 9,600 per annum or Rs 800 per month. Typically, if your Basic is Rs 9,850 per month or Rs 118,200 per annum, which should be 35-40% of your gross.

I assume your CTC is around Rs 340,000 (35%) and Rs 300,000 (40%), and hence your CCA could be up to Rs 3,000 - 5,000 depending on your CTC. Also, keep your reimbursements high to save tax.

Dear Lucky,

Conveyance allowance is granted to an employee to compensate him for the cost of transportation incurred while traveling between the residence and office. On the other hand, City Compensatory Allowance (CCA) is meant to compensate an employee for the higher cost of living in certain metro cities such as Delhi, Mumbai, Kolkata, Chennai, Bangalore, and a few others, but not all cities in India.

Thank you.

Hi Anuradha,

As you mentioned in your post, the CCA of an employee has a basic of Rs. 9850. Shall we consider the CCA amount as 50% of the basic?

Kindly revert.

Regards, Ravi