Conveyance Reimbursement

vals,
As per the provision of Income Tax Act,1961, - Any transport allowance granted to an employee to meet his expenditure for the purpose of commuting between between the place of residence to the place of duty is exempted to the extent of Rs. 800/-per month.
the same is 1,600/-per month in case of handicapped.
The Conveyance allowances is different then Transport allowances, the taxability of Conveyance allowances will be -
If the same is received for personal purpose then it will be forming part of Salary & fully taxable.
If for office purpose then the employer will liable to pay FBT, Employee is not liable to pay tax on that.
Taxability in the hands of Employer will be (30% + Surcharge+E.Cess) of taxable benefit, benefit in our diss. is Conveyance allowance, & Taxable benefit as per IT Act is ( in case of Conveyance allowance ) 5% of total value.
Rgds,
Deepak Singh