City compensatory allowance - treatment ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2013 HELLO,
(1) I AM RECEIVING RS.8850 PER MONTH AS CITY COMPENSATORY ALLOWANCE. IS IT EXEMPTED ALLOWANCE AS NOT DEFINED IN "SALARY HEAD".

(2) I HAVE INCURRED EXP AS CONVEYANCE FOR OFFICIAL PURPOSE & I AM RECEIVING CONVEYANCE ALLOWANCE BUT I DO NOT HAVE ANY PROOF OF THESE EXP.
IS IT TAXABLE ALLOWANCE ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 February 2013 The amount of CCA is taxable. It is allowed for meeting the expenses when the place of employment gets changed and due to this the employee has to bear the higher living costs
in the new place.
.
You must be producing vouchers to claim the expenses. In case of Petrol expenses- you have to produce the bills also. If your employer certifies that the expenditure has been incurred on conveyance for the purpose of company's work, it does not become taxable.
.

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2013 thanks a lot sir

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