conveyence allow.

This query is : Resolved

Ram Prakash Gautam (Querist)
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10 August 2010 sir,
plz guide me how much taxable amt. in below figure ??????

a person gets tansport allownce rs. 800 p.m which is exempted & conveyence allowance Rs. 5000/- p.m. than how much amt. will be exempt in conv. allowance ?
as i know :- exemption will be following:-

AMOUNT RCVD OR AMT. EXP.
WHICHEVER IS LESS WILL BE EXEMPT .
IS THIS RIGHT ?????????
PLZ GUIDE ME

CA Punit

CA Punit (Expert)
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10 August 2010 Conveyance allowance is fully exempt u/s 10(14).
It should be used by the employee in conveyance for official purposes.

It is taken for granted that the amount is fully used up.

still wait for more replies...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 August 2010 Transport allowance is exempted Rs.800 or actual allowance which ever is lower

Conveyance allowance is exempted only if it is provided for meet the offical and business purpose otherwise fully taxable

please refer this circular
Circular : No. 764, dated 20-2-1998

Circular: No. 196 [F. No. 275/29/76-ITJ], dated 31-3-1976.