Conveyance Allowance

[Sandeep Kumar]

dear members,

pls suggest how can i claim maximum benefit of Conveyance allowance, suppose i am a salaried employee receiving Rs. 6,000/- as conv allowance.

thanks & regards,

--

Sandeep Kr. Mishra
Company Secretary

[CS CMA Meena]

No... You can claim only Rs 6000/-

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[Sandeep Kumar]

how can i claim this

[Hari]

Sandeep,

Exemption is available u/s 10(14) upto actual amount or Rs. 800 pm whichever is less.

Employer has to deduct this amount in Form 16.

Thanks,

Harish

Yours,

Hari.....

[Sandeep Kumar]

In my opinion, exemption is available for actual amount utilised for official purpose. it may be more than 800 pm of even whole conveyance allowance as per sec 10 read with respective rules, pls see and 800 p m is for transport allowance for to and fro to office and residence

[Hari]

Yes. Transport Allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of residence & duty.

I assumed and suggested as transport allowance received b/w residence and office.

Any other purpose, it will be fully taxable.

Have a nice time.

Thanks,

Harish

[Pratik Joshi]

Rule 2BB provides that any allowance granted to meet the expenditure incurred on conveyance in the performance of the duties of an office of employment or profit for the purposes of Section 10 (14) (i) of the Income Tax Act. This would be completely exempted from income tax in case free conveyance is not provided by the employer.

What would be required to be produced by the employee concerned would be a certificate that the entire conveyance allowance has been spent by him in the discharge of his duties of office.

If any employee saves on account of the conveyance allowance, then the amount not so spent but saved by him would be considered as taxable income of the employee concerned.

The latest thinking of the Government of India, Ministry of Finance, is that the conveyance allowance would be taxable as income specially if it has got a component of compensating the employee in respect of the expenditure so incurred by the employee on conveyance expenditure from office to residence and residence to office.

It is further clarified that any allowance, by whatever name called, granted by an employer, which has the element of compensation of the expenditure incurred on commuting from residence to office or vice versa, will also not qualify for the benefit under Section 10(14)(i).

Transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty is exempted upto 800 per month.

Thus, in view of the above amendment if an employee receives transport allowance upto a maximum of 800 p.m. wef 1-8-1997 the same will he exempt from income tax even when the same is for commuting and back from office.

The limit of exemption in respect of Transport Allowance for handicapped employees is 1,600 per month.

With regards

CA. Pratik Joshi

[Pratik Joshi]

Rule 2BB provides that any allowance granted to meet the expenditure incurred on conveyance in the performance of the duties of an office of employment or profit for the purposes of Section 10 (14) (i) of the Income Tax Act. This would be completely exempted from income tax in case free conveyance is not provided by the employer.

What would be required to be produced by the employee concerned would be a certificate that the entire conveyance allowance has been spent by him in the discharge of his duties of office.

If any employee saves on account of the conveyance allowance, then the amount not so spent but saved by him would be considered as taxable income of the employee concerned.

The latest thinking of the Government of India, Ministry of Finance, is that the conveyance allowance would be taxable as income specially if it has got a component of compensating the employee in respect of the expenditure so incurred by the employee on conveyance expenditure from office to residence and residence to office.

It is further clarified that any allowance, by whatever name called, granted by an employer, which has the element of compensation of the expenditure incurred on commuting from residence to office or vice versa, will also not qualify for the benefit under Section 10(14)(i).

Transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty is exempted upto 800 per month.

Thus, in view of the above amendment if an employee receives transport allowance upto a maximum of 800 p.m. wef 1-8-1997 the same will he exempt from income tax even when the same is for commuting and back from office.

The limit of exemption in respect of Transport Allowance for handicapped employees is 1,600 per month.

Thanks,

CA. Pratik Joshi

9427903212

[Sandeep Kumar]

dear Pratik

Yes in addition to transport allowance, if we can show the balance amount of conveyance allowance utilised for official purpose, the same may be expemt. If we bifurcate the conv allowance into transport allowance and conv. allowance the show the conv allowance used for official purpose wholly, we can claim deduction for full amount.

[Amarnadh Baratam]

under sec 10(14), u can claim upto 9600p.a

On Fri, Jul 25, 2014 at 11:23 AM, Sandeep Kumar <sandeep....@gmail.com> wrote:

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[Sandeep Kumar]

but sec saying that what ever i used for official purpose i can claim deduction for that. pls refer rule 2BB and suggest.

[Sweety Rai]

Dear Sir,

Conveyance Allowance is nature of parmant part of ur Salary so As per The IT act u can Claim As deduction on Rs. 800/- Per Month :

For ur Refernce

Friends, under section 10(14)(ii) exempt maximum Rs. 800.00 PM TravelingAllowance from Income Tax. For more details the Tax payee Employee follows Traveling Allowances are exempt under section 10(14) (ii), subject to the limits stated there-against:

• Special Compensatory Allowance or High Altitude Allowance or Uncongenial Climate Allowance or Snow bound Area Allowance or Avalanche Allowance:

Rs. 800/- common for various areas of North East, Hilly areas of U.P., H.P. and J &K (for specific details about the areas eligible for the allowance, please refer to the section 10(14) if I T Rules 1962) and Rs. 7000/- per month for Siachen area of J & K and Rs. 300/- common for all places at a height of 1000 mts or more other than the above places.

• Special Compensatory Allowance in the nature of Border Area Allowance or Remote Locality Allowance or Difficult Area Allowance or Disturbed AreaAllowance:

Various amounts ranging from Rs. 200/- per month to Rs. 1300/- per month are exempt for various areas as specified in Rule 2BB.

• Special Compensatory (Tribal Area/Scheduled Area/Agency Area Allowanceavailable in M.P., TN, U.P., Karnataka, Tripura, Assam, West Bengal, Bihar, Orissa:Rs. 200/- per month.
• Any allowance granted to an employee working in any transport system to meet his personal expenditure during duty performed in the course of running of such transport from one place to another:

70% of such allowance upto a maximum of Rs. 6000/- per month.

   Regards

  Sweety Rai

Divya Jyoti Industries limited

Company secretary & Compliance Officer 

[Sandeep Kumar]

dear madam,

pls refer rule 2BB of IT Rules and suggest