Car allowance deduction

Dear Nisha,

Transport Allowance is exempt upto Rs. 800 p.m. It is granted for traveling from residence to and fro office.

All the expenses on traveling incurred by the employee after reaching the office, for official purposes are totally exempt…

- Ankit

Thanks for your reply.

But my question is can I Claim expenses incurred for travelling betwwen office and residence from my car allowance which I am receiving from my company.

So, suppose my car allowance is Rs. 7500

Expenses for to and fro from office to home Rs. 5000 (Can I Consider this as pert of official duty???)

So taxable value of perk rs. 2500

Is it correct???

Dear Nisha,

you are welcome..

yes you can claim the expenses incurred by you subject to the maximum of rs 800 per month....so, since the expense incurred by you is Rs. 5000, you can claim rs 800 and the balance 4200 cannot be claimed

Yes, he can claim higher amount (more than 1800 per month) if expenditure incurred towards official job is higher. Following formality need to be complied.

1) The employer has maintained complete details of the journey undertaken for official purposes;

2) The employer gives a certificate that  such expenditure was incurred wholly for official.

Also, no standard deduction of Rs.800 is allowed in this case.