Conveyance Allowance!(BPO)& Tax Implications

Hello,
In the BPO division of our organisation, the travelling allowance is included in the CTC structure (Agents who do not take pick and drop). The amount is: 960 P.M. (Not 800 P.M.).
But for people who do not take the pick and drop, how can we adjust that amount? say for example: CTC with Conveyance Allowance (Rs. 960 P.M.)= 10,000
How can we adjust the CTC of the agent who is not provided with conveyance allowance? can the Special allowance part be increased to match that?
same thing with the food allowance: What to do with agents who are not availing of the food allowance? can we adjust the special allowance part for it?
let me know.
Thanks and regards,
Ayona

Hi Ayona,
you are on the right track. you can adjust them with Special allowance.
regards
Sirisha.K

@ Anoya
I am not quiet getting your doubt. All I can figure out is this ( correct me if i m wrong ):
There are some agents who are not using pickup/drop facility. Company is giving Rs 960 pm to them.
- Now, if this amt is given under conveyance allowance, such emp will get an exemption on the TA upto Rs 800 pm.rest Rs 160 pm will be taxable. If this amt is given under any other allowance...it will attract tax as per that particular allowance.
You can adjust and name your allowances in such a manner that employees will attract least tax liability.
Hope this solves your doubt...if not plz write back
rgds
nikhil

Hello Nikhil,
Thanks for your suggestion. But My query was this:
In our BPO division, the agents are being paid Rs. 960 P.M. as conveyance allowance (who do not take pick nd drop facility)
But for the agents who do take pick n drop, they are not paid any conveyance allowance. So, can i , in this case increase the Special Allowance Part to match that?
I think that now its clear to you. Also it would be helpful if you could throw some light on this fact: Does special allowance need to have a fixed % of the basic?
thanks and regards,
Ayona

Hello Ayona
Why you want to increase the speacial allowance of the agents ( to rs 960 ) who are taking the pick up n drop facility?? Cuz those who are getting this allowance are because they are not using pick up/drop dacilty...Am I right?? or I am confused again??? :-(
There is no hard and fast rule on the % of special allowance. You can keep it as much as u want.
Plz write to me on [Login to view] if u still need any clarifications
Sorry to confuse u han !!!
nikhil

thanks Nikhil, I think you r not getting me or I am failing to make u understand!
Anyways, I have got my answer!!
Thanks again for your suggestions,
Ayona