Replies above technically answer the query. However, few more points:
Rs 800/- per month doesn't attract ANY tax whether from employee or employer; no proof of expenses is required.
Reimbursement of fuel, Maintenance expenses and Driver's salary attract FBT (30% on 20% plus service tax i.e. 6.7%) from employer. Employer can choose to pass this onto employee - who will benefit as otherwise he'll get it taxed at 30% plus or whichever tax bracket he falls in. For employees in less than 1.5 lakh TAXABLE SALARY bracket, this reimbursement should be avoided as he can avoid the least tax as well.
Besides, can someone comment whether expense incurred on conveyance like auto, taxis for own commute to office or personal commute is also subject to FBT? and at same rate? In such a case, these bills can be allowed by organisation under this head.
PS: Can citeHR also have a "Justify" button in text box.