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

From India, Hyderabad
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If he owns a car in his name and used for official conveyance, he can get exemption upto Rs.20,000/- towards fuel & maintenance charges subject to the submission of bills.
From India, Lucknow
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