Conveyance allowance

janakiramg (officer) (67 Points)

20 November 2013  

As per policy of our company (PSU), Development Officers are entitled to get incentive based on targets which include conveyance allowance also.  Conveyance allowance( in the form of incentive) is workedout based on his performance ie more business, more conveyance allowance.  Ofcourse, concerned officer naturally has to spend  more on conveyance expenses to procure more business. Kindly clarify whether conveyance allowance paid is allowed as exemption under Income Tax.