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conveyance allowance exemption


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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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)

 
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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....

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

THANKS IN ADVANCE

 
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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.


Total thanks : 1 times

 
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CA, CS Final


i agree with Jinesh

 
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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

 
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No Knowledge Without Memory

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

 
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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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A person who is director of 2 companies in full yaer. And both companies take conveyance exepmtion u/s 10 Rs.9600/-. Then which amount should we take as an exemption for filing Income tax return????  Is amount from both of companies are allowable for exemption????

Please Help.
 

 
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