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Conveyance allowance

Ramakrishnaraju (supervisor) (211 Points)

14 February 2010

How much amount is exempted under Conveyance allowance? is it Rs.800/- or is it Rs.1,600/- per month .

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Amir (Learner) (4016 Points)
Replied 14 February 2010

Dear ramakrishnaraju,

In Income Tax Act -
1) Transport Allowance - For commuting between Residence & place of work -
        Lower of the following is exempt -
                  a) Amount Received
                  b) Rs. 800/month (In case of Blind/Handicapped Employees - Rs. 1,600/month)
Now in this case actual expenditure is irrelevant, no need to collect bills/undertaking from employees..
2) Conveyance allowance - For performing official duties
           Lower of the following is exempt
                     a) Amount received
                      b) Amount Spent on performing duties
Now, in this case employer should collect proof of expenditure like bills/undertakings,etc