Conveyance allowance under sec 10(14) AND lunch allowance

Tax planning 12507 views 5 replies

Could some one guide me

1) Client getting conveyance allowance as 5000 per month,i.e. Rs 60,000 PA and Rs 800 per month as transport allowance.

company itself giving exemption for Rs 800 of transport allowance per month in form 16  But My client's nature of job include to meet his companies customer and give them services and also  include sales and marketing job. for that he use his own vehical and make expenditure from his own pocket on transport , these expenses are not recovered by my client from company, Can I ask for exemption under sec 10(14) conveyance allowance of Rs 5000 per month to the extent actual expenses incurr by my client while filling returns ???   

2) He is also getting cash / in salary as Lunch allowance Rs 4000 per month. Can we claim expmtion for this also if yes let me know section ??

Regards

Suhas

Replies (5)

Can some one reply Please .....................

conveyance allowance granted to meet  the expediture on  conveyance of performance of duties of an office. And such amount is exempt till the limit it is utilised or given for the official purpose ( whichever is lower)

So in your case, to claim the exemption you have to show that the whole amount is  utilised for official purpose.

On the other hand transport allowance is given to employees  for commuting between the place of residence and the place of his duty. so transport allowance max limit is Rs 800 p/m in your case.

 

tiffin allowance or lunch allowance is totally taxable.

Thank You Renu

Could You through some light specific to my question like forget about transport allowance as company itself giving deduction in form 16.

But conveyance allowance didnt mention whether it is for official duties or what ? it just mention in salary slip under head "conveyance Allowance" Rs 5000 each month i.e. 60,000 PA

Now my question is company did not pay anything regarding out door dutues for servicing and client acquisition, so can we claim this deduction of conveyance while filling tax return as exemption under 10(14) and keep all those expenses copies and details of visits to customers etc. etc.

I come to know from some website that to calim exemptions under 10(14)  this conveyance allownace has to be sanction from company that specific provided for performing office duties ????

regards

Suhas

Yes you can claim deduction of conveyance allowance to the extent it is spent for official purpose . For this it is the responsibility of assessee to prove that such an amount has been spent for official purpose . but on the same hand it is not open to the assessing officer to call for the details of expenses actually incured by the assessee unless the allowances are extremly high as compared to the salary received by the assessee or unreasonable with reference to the nature of assessees job . 

In all you can claim deduction for the same .

 

Thank You Renu & Abhay

Regards


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