purav radia (executive) (36 Points)
23 August 2012Please advice what will be conveyance allowance exemption for below mentioned case:
| Month | No of Days in Month | Salary for no of days | Basic | HRA | Conveyance Allowance | Reason |
| April | 30 | 30 | 10000, | 5000, | 800 | |
| May | 31 | 16 | 5000, | 2500, | 400 | Due to error in attendance system employee was paid less salary. |
| June | 30 | 45 | 15000, | 7500, | 1200 | Salary for 15 days of May paid with salary of June in respective heads |
ranjithsingh
(Chartered Accountant)
(153 Points)
Replied 23 August 2012
As per section 10(14)If the travelling is between office and residence then conveyance allowance is not exempt from tax.because it will treated as perquisite U/s 17(2). Other than above mentioned journey, conveyance is exempted as per the following criteria
Amount of allowance or amount totally utilised for the purpose whichever is less is exempt from tax.
Sheena Maheshwari
(ARTICLESHIP)
(240 Points)
Replied 23 August 2012
the exemption in this case would be 2400 (800*3) ..since as per the rule max exemption is 800 per month
and urs is within the limit
CA Bhupinder Arora
(Accounts Executive)
(76 Points)
Replied 23 August 2012
The conveyance exemption is Rs. 800/- P.M , As per your Case the total amount is Rs. 2400/- for 3 Months so its within the limits of Rs. 800/- P.m . Therefore, you can take Rs. 2400/- as conveyance Exemption.
CA. NARAYAN BHANDARI
(Manager-Accounts)
(57 Points)
Replied 24 August 2012
Avinash Kumar
(CA Final Student & Working as Deputy Manager Accounts)
(79 Points)
Replied 24 August 2012
Transportation allowance is exempt upto 800 p.m for travelling between residence and office. In your case your income is exempted
Ram Chandra
(Finance Officer)
(29 Points)
Replied 30 August 2012
Your system error is tolerate because it assess on end of the year so you can adjust with next month, in connection of Conveyance Allowance Exemption i think you are tolking trasportation allowance under other allowance section 17(2), if he are using employer source of trasportation than he can not use this exemption
sachin
(CMA Student)
(59 Points)
Replied 30 August 2012
@ purav in your case conveyance allowance exemption is 2400. do not treat it as transport allowance.
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