Conveyance allowance - taxability

Hi,

I work in an MNC into HR - I have a question about transport allowance : details :

1) company is providing cab facility to employees to come to office and it was free of cost and neither this cost is included in employees CTC. However becasue of the administrative difficulties, company has decided to give a sum of 3500 pm for who wish to opt out of the  cab facility.

2) as part of the salary, there is component called conveyance allowance of rs.800. pm. At the end of the year, people who are not using the company provided transport will get tax exemption on this amount. However with the intrduction of the above policy ( point 1) , i have following questions :

let's say a person joined on Nov 1st ( the day new poloicy came into force) and opted out using the company provided transport and therby getting 3500 pm as transport allowance which is taxable. since this person not using company transport automatically qualifies for rs 800 tax exemption. but since he is getting benefitted for not using company transport to the tune of 3500 ( by accepting 3500 employee in a way using the company transport indirectly) and also getting tax exemption on 800.00 pm

Please let me know can we give tax exemption on rs.800.00 pm for people opted out of company transport facility.

Thanks in advance!