Conveyance Allowance is taxable or exempted

Save Share

This query is : Resolved

Quick Summary

This discussion explores whether a monthly conveyance allowance of Rs 2000, provided by a logistics company for using company vehicles or private vehicles for work, is taxable. The allowance is credited monthly and lapses if not fully used, with no carry-forward. Generally, if the facility is used for conveyance during duty or service, it is considered tax-free.

Jayadev B

Jayadev B (Querist)
Follow

27 March 2024 I am working in a Logistic company, where we have all types of vehicles for transportation of people and material with an agreement with private vehicle owners. Like Uber, Ola, Rapido, etc.
The company gives a credit of Rs 2000/- per month to me. We can use our company vehicles like Motorbyke, Car, Tempo etc to the extent of Rs 2000/-. In case, if we don't use fully, the left-out credit will be lapsed and next month again a transport worth of Rs 2000/- will be credited. So the amount will not be carried forward.

Whether this facility is taxable or not.