Taxability of Conveyance Allowance
This query is : Resolved
CA Sanjay Baheti
(Querist)
23 June 2010
The conveyance allowance of Rs. 800 P. M. is tax free in the hand of employees and if the company provide car/conveyance facility to the employees then what will be the taxability of conveyance allowance of Rs. 800 PM. in case: i. Company provides car to the employees and add the value of perquisites of car in the salary and deduct TDS and ii. Company provides conveyance facility through company bus to the employees and do not charge any amount from employees
Shudhanshu Agrawal
(Expert)
23 June 2010
If a comapny provides car/conveyance facility in such a case transport allowance will be taxable. There will be no exemption of Rs. 800 pm.
CMA Ramesh Krishnan
(Expert)
23 June 2010
Dear Shudhanshu,
There is no specfic provison , if Car facility provided transport allowance is taxable.
In the Act, Transport allowance given itself Rs.800 Exempted even proof for the expenses not to be provided
There is no specfic provison , if Car facility provided transport allowance is taxable.
In the Act, Transport allowance given itself Rs.800 Exempted even proof for the expenses not to be provided
Shudhanshu Agrawal
(Expert)
24 June 2010
Although no where in the Act it is not mentioned that if Conveyance Facility is provided then Transport Allowance should not be allowed. But the purpose for which transport allowance can be given is specified and according to me for one purpose two expemtion can not be allowed.
Moreover according to me with conveyance facility transport allowance should not be given.
Moreover according to me with conveyance facility transport allowance should not be given.
CMA Ramesh Krishnan
(Expert)
24 June 2010
Thanks for accepting " It was mentioned no where in the Act"
Shudhanshu Agrawal
(Expert)
24 June 2010
Earlier on conveyance facility FBT was applicable and hence taxable in the hands of employer. Since FBT is abolished and the benefits are again taxable in the hands of employee. Moreover with Rule 3(7)(ii) i think now conveyance facility is taxable. Please provide the views
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