Master in Accounts & high court Advocate
9615 Points
Posted on 28 September 2024
In both income tax regimes, the taxability of the allowance is as follows: *Old Regime:* - Conveyance Allowance: Exempt up to Rs. 1,600 per month (Rs. 19,200 per annum) - Transport Allowance: Exempt up to Rs. 1,600 per month (Rs. 19,200 per annum) - Fuel Reimbursement: Exempt if actual expenses are incurred and reimbursed Excess amount above the exempt limit is taxable. *New Regime:* - Conveyance Allowance, Transport Allowance, and Fuel Reimbursement are all taxable in full, without any exemption limit. So, in the Old Regime, only the excess amount above Rs. 19,200 per annum is taxable, while in the New Regime, the entire amount of Rs. 60,000 per annum is taxable. Please note that these exemptions and taxability rules may change, and individual circumstances may vary.