About conveyance allowance

As per section 10(14) of the income tax act 1961, following are the allowances allowed on the Least of actual receipt or actual incurred basis :

a)Helper Allowance b)Research & Academic allowance c)Travelling allowance d)Conveyance allowance e)Uniform allowance f)Daily allowance

Basis : No fixed amount as limit is defined for the above allowances as exempt. It is exempt as least of actual expenses received or actual expenses incurred .

so here if your employee 's  actual expenses  is less than allowance received i.e 800 then actual expenses is taken for exemption,otherwise the actual received.

Vehicle Maintenance allowance is not exempt.