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Discussion > Income Tax > Tax planning >

conveyance allowance exemption

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Manager

[ Scorecard : 121]
Posted On 21 December 2009 at 17:32 Report Abuse

hi all

 

we are giving conveyance allowance to our employees in there salaries. now to claim exemption, law says" as per actual expenditure done by employees"

previously supreme court ruling given last year has said that no proof of expenditure is required for claiming deduction in LTA and conveyance allowance.

so our company stoped taking proof of claim , but i donot think this is a proper policy for giving deduction.

kindly advise what is the propwer way, to give deduction without getting proof or is there any other formal way to give deduction . if yes, kindly advise of some formal way of giving deduction, so that my company is safe in future.


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CA Jayesh Gokalgandhi
CA in Industry

[ Scorecard : 121]
Posted On 21 December 2009 at 17:59

Conveyance allowance (i.e. allowance for commuting from residence to office) is exempt upto Rs. 800 per month without any requirement of documentation.

You may look at other allowances like Meal Coupon and uniform allowance where no proof is required for exemption.

Would also like to mention that it is a misconception that proof is not required for claiming LTA. Law has specified certain conditions for exemption of LTA. Even if the company does not ask for documents it will have to atleast satisfy itself that the amount claimed is as per these conditions (like say comparision with 3tier AC fare etc)





Sumit A. Raval
Student

[ Scorecard : 163]
Posted On 23 December 2009 at 17:27

As per Income tax act, conveyance allowance is exempt up to Rs.800/- & for that there is no ned to produce any document. So Don't worry... & just make a payment voucher to pay the same....




GAURAV KUMAR SINGH
cwa

[ Scorecard : 23]
Posted On 08 July 2011 at 12:42

CAN WE GIVE CONVEYANCE ALLOWANCE TO DIRECTOR IF THE COMPANY HAS PROVIDED A CAR TO HIM,,,????? PLEASE REPLY FAST

THANKS IN ADVANCE




Jinesh Aggarwal
Financial Controlar and consultant

[ Scorecard : 39]
Posted On 14 September 2011 at 15:59

Dear All,

There is a difference between conveyance allowance & transport allowance. Transport allowance is exempted upto Rs. 800 P.M. but conveyance allowance is exempted  on actual expenditure basis. Yes, as per apex court no proof of expenditure is required for claiming deduction in LTA and conveyance allowance.

The proper way, to give deduction without getting proof, is

1. Conveyance should be part of the taxable salary.

1. Monthly Conveyance sheet shoud be authorised by the head of department or high authority of concern deptt.

2. Following detail should be mentioned in coveyance sheet.

Dete of journey

Location

purpose

Name & Address of Party

3. It should be cross verified from attendance register or any other register maintained by HR department for OD.




shankar
CA, CS Final

[ Scorecard : 238]
Posted On 10 July 2012 at 14:54

i agree with Jinesh




Randheer Singh
Accountant

[ Scorecard : 21]
Posted On 24 January 2014 at 11:39

Hi All

If I am a salaried person and company was not provide me conveyance. In this condition can I avail exemption of conveyance in Income Tax




TAX PANDIT
no knowledge without memory

[ Scorecard : 401]
Posted On 26 January 2014 at 21:26

if company does not provide conveyance allowance than you are not eligible to take benefit of exemption




Praveen
ARTICLE

[ Scorecard : 21]
Posted On 04 March 2014 at 12:45

whether conveyance expense can be paid in cash, if yes than how much amount can be paid at a time and allowable in the hands of company under income tax act 1961



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