Conveyance Allowance

This query is : Resolved

Jigish (Querist)
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23 March 2009 My query in Allowing Conveyance Allowance to employee by employer at the tome of finalise Form 12 B of Employee.

I am looking after accounts of my client and his employee submit Conveyance allowance by giving simple voucher for travell to one place to another place for office work, and he ask to my cleint to adjust said amount against his total salary as he do not want to deduct TDS on said amount.

So up to what extend it is allowable? as per IT rules Rs.800/- per month allowable but in addition of that is any amount allow under conveyance allowance OR any other way to save Tax by employee from his salary?

Thanking you,

Jigish Shah

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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23 March 2009 For transport allowance - 800 p.m. - no voucher required.

and if employee is getting conveyance allowance for office work then that is business expenditure also liable to FBT. it will not be added to his or their salary.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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24 March 2009 Conveyance Allowance is taxable to employee.
Amt.Spent is exempt as submitted by voucher.

Jigish

Jigish (Querist)
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24 March 2009 I recd reply, but if employer organisation is proprietorship business and pass entry in accounts as expenditure given to employee for conveyance by submitting writen voucher by employee than is any TDS liability of employer?

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