Dear HR Fraternity,
I would like to ask, what does conveyance allowance actually mean? If the salary is ₹16,000 and the conveyance allowance is ₹4,000, what does it mean?
I had asked my HR for a salary of ₹20,000 per month, and he has designed the salary structure like this: ₹16,000 per month and ₹4,000 conveyance allowance. How much will I get?
Thank you.
Regards,
From India, New Delhi
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6I would like to ask, what does conveyance allowance actually mean? If the salary is ₹16,000 and the conveyance allowance is ₹4,000, what does it mean?
I had asked my HR for a salary of ₹20,000 per month, and he has designed the salary structure like this: ₹16,000 per month and ₹4,000 conveyance allowance. How much will I get?
Thank you.
Regards,
From India, New Delhi
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As far as conveyance is concerned, a maximum of Rs. 800 can be fixed, and it's a part of your monthly emoluments. I think in this case, it could be reimbursement, not conveyance. If so, you can get the entire amount on a monthly basis.
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Sorry, but you all are giving the wrong answer. The limit of conveyance allowance of Rs. 800 per month is only for the purpose of tax-free perquisites under the Income Tax Act. Nothing in any law prevents the employer from giving any amount as conveyance allowance. It's just that the balance will be a part of the taxable salary. I think in this case, the company is giving a basic pay of Rs. 16,000 per month and a Conveyance Allowance of Rs. 4,000 per month. If it is actually a conveyance allowance (not reimbursement), then you will get the entire amount every month. However, I do not understand the justification of giving such a breakup.
From India, Mumbai
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From India, Mumbai
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Understanding Salary Breakup and Conveyance Allowance
Salary breakup depends on company policy and varies from company to company. In the above case, they can provide a conveyance allowance of Rs. 4000 without any issues. However, when it comes to tax exemption, the individual will receive a maximum exemption of up to Rs. 800 per month (Rs. 9600 per annum) without the need for any proof.
Regards
From India, Kota
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Salary breakup depends on company policy and varies from company to company. In the above case, they can provide a conveyance allowance of Rs. 4000 without any issues. However, when it comes to tax exemption, the individual will receive a maximum exemption of up to Rs. 800 per month (Rs. 9600 per annum) without the need for any proof.
Regards
From India, Kota
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Hi, I think the company has set your basic salary at Rs 16,000 to exempt you from ESIC applicability. Also, as you rightly said, conveyance allowance per month is taxable over Rs 800. Speak to your company to restructure it and to save you from the tax burden.
Regards
From India, Mumbai
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Regards
From India, Mumbai
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SALARY CALCULATOR & INCOME TAX.zip
Income tax declaration & Salary structre 2012-13.xls
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(Fact Checked)-[The user reply contains accurate information regarding conveyance allowance and its tax implications. The user correctly explains that there is no legal limit on the amount of conveyance allowance an employer can provide, but any excess amount above the tax-free limit will be taxable. The user also correctly interprets the breakdown of the salary structure provided.] (1 Acknowledge point)