Hi all, I am working on an IT project on a contract basis. Now, I have received an offer from another company. In their offer, the CTC consists of basic pay, HRA, conveyance allowance, gratuity, and PF. Since this job requires traveling, in addition to the conveyance allowance, will I also receive a traveling allowance? Are these two allowances different?
Regards,
Muneer K.M
From India, Kochi
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Regards,
Muneer K.M
From India, Kochi
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Obviously, Conveyance Allowance and Travelling Allowance are different. Conveyance allowance is a standard earning head offered and is exempt to the extent of Rs. 800 per month under IT rules. However, travelling allowance will be totally exempt from IT because you actually incur this expense and do not make any earning out of it. Each company has its own policy. Some companies pay auto fare, some others reimburse expenses incurred by public transport, and there are companies that reimburse a fixed sum for every kilometer traveled if the employee uses his mode of transport, and it differs between two-wheeler and four-wheeler.
Trust the matter is clarified.
Regards,
M.V. KANNAN
From India, Madras
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270Trust the matter is clarified.
Regards,
M.V. KANNAN
From India, Madras
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ESI-Not-applica ble-on-Conveyan ce-Allowance.do c
Revision in conveyance allowance in Maharashtra from 1.10.2013.pdf