Conveyance allowance

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CA Suresh kumar panda (Querist)
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11 August 2011 if a person working in two companies simultaneously & getting 2 conveyance allowance, can he claim Rs800 X 12month for each of the company? i. RS9600 for each for exemption??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2011 No he can claim Rs. 800 per month maximum and total 9600/ p.a. only.

CA Suresh kumar panda

CA Suresh kumar panda (Querist)
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11 August 2011 why sir?? he is spending for both the companies.Why he cant claim?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2011 This Rs. 800 allowance is known as Transport Allowance under the IT Rules.
Purpose: Office to home and Home to Office traveling expenses.

Reason for not allowing for both the emloyers:

1. Govt. thinks in its own way. It has got reasons. It knows that Govt employees hardly attends their offices.

2. If an employee goes to office then he is not coming back to the home for attending the another employer.
.
Employee goes from Office 1 to Office 2
and then returning home. Office 1 to Office 2 means- place of employment.
.
The word conveyance allowance can be used in a different manner also.

For performing the official duties if any expenditure towards conveyance is incurred by the employee it is reimbursed to the employee and it is not taxable in the hand of the employee also.

.

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