Transport allowance and conveyance allowace

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ASHOK KUMAR DAS (Querist)
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15 December 2013 UNDER SEC 10 OF INCOME TAX ACT, ARE TRANSPORT ALLOWANCE AND CONVEYANCE ALLOWANCE ARE SAME.

IF SO WHY THERE IS DIFFERENCE IN THE EXEMPTION UNDER SEC 10.

AN EMPLOYEE IS PAID "CONVEYANE ALLOWANCE" OF RS 3000/-PER MONTH TOTALLING TO RS 36000/- PER YEAR, WILL HE WILL GET EXEMPTION UNDER CONVEYANCE ALLOWANCE (MORE THAT 1600CC VEHCILE ETC) OR CAN HE CLAIM "TRANSPORT ALLOWANCE" AT THE RATE OF RS 800 PER MONTH I.E. RS 9600/-PER YEAR.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 December 2013 Dear Ashok,

they are two separate allowances. conveyance allowance with a limit of Rs 800 per month is covered under section 10(14).

The motor car reference comes under perquisite (Section 17 and Rule 3).

So you need to check under which section are you being paid this money.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 December 2013 Both are not same under income tax act.

ASHOK KUMAR DAS

ASHOK KUMAR DAS (Querist)
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19 December 2013 Then under WHAT CIRCUMSTANCES THE TRANSPORT ALLOWANCE RS 800/-PER MONTH AND RS 9600/-PER YEAR REBATE WILL BE ALLOWED TO EMPLOYEES.

WHAT DOCUMENTS THE EMPLOYEE HAS TO SUBMIT FOR CACULATION OF SUCH EXEMPTION SO THAT EMPLOYER WILL ALLOW IT IN TDS CERTIFICATE AT THE YEAR END.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 December 2013 for claiming 800 pm transport allowance, no documentation is required. It shall be allowed on presumption.

ASHOK KUMAR DAS

ASHOK KUMAR DAS (Querist)
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31 December 2013 There is no circumstance and under Income Tax Act the Conveyance Allowance is paid by the employer.

Only Conveyance Allowance is paid every month at the rate of Rs 3000/=per month.

Whether rebate of Rs 800/=per month i.e. Rs 9600/=per year will be available even if Rs 3000/- is paid PER MONTH as CONVEYANCE ALLOWANCE by the EMPLOYER.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 December 2013 Dear Sir,

Even where conveyance allowance is Rs 3,000 per month, you can still claim rs 800 per month exemption under 10(14).

CA Pallav Singhania

CA Pallav Singhania (Expert)
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31 December 2013 Transport Allowance is exempt U/s 10(14) read with rule 2BB is Rs. 800/- p.m.

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