One of our employees uses motorcycle to come to office and for moving around for work related activities. Can he claim a higher conveyance allowance than800 per month? If Yes, how much more can he claim as conveyance allowance? How much can he claim as maintenance allowance?
and what is the maximum limit?
is there any one to help me? please
NO LIMIT FOR CONVEYANCE ALLOWANCE IN THE ACT...CONVEYANCE ALLOWANCES ALLOWED UPTO THE ACTUAL INCURRED..
hi please help me about earlier post please
ya amit ask your query
THERE IS DIFFREANCE BETWEEN ALLOWANCE & EXPENSES
CONVAYANCE ALLOWANCE LIMIT IS 800 P.M
BUT YOU CAN CLIAM CONVAYANCE EXPENSES ANY AMOUNTS (ACTUAL SPEND) BY PROVIDING SUPPORTING FOR EG MOTOR VEHICLE PETROL BILL
As per section 10(14) of the income tax act 1961, following are the allowances allowed on the Least of actual receipt or actual incurred basis :
a)Helper Allowance b)Research & Academic allowance c)Travelling allowance d)Conveyance allowance e)Uniform allowance f)Daily allowance
Basis : No fixed amount as limit is defined for the above allowances as exempt. It is exempt as least of actual expenses received or actual expenses incurred .
so here if your employee 's actual expenses is less than allowance received i.e 800 then actual expenses is taken for exemption,otherwise the actual received.
Vehicle Maintenance allowance is not exempt.
@ Amit
Your consideration should be as reimbursement instead of allowances ..
In case of allowances ( which are shown in salary slip ) it can't be more than Rs 800
in case reimbursement , it can be gone up to any limit with putting proper bill of petrol/diesel
Form maintenance purpose.. prepare a SOP in ur organisation regarding the maintenance exp comapring with running of vehicle (which should be clubbed with oil expenses in per km) and that should be reimbursed in proper format of claim by employees.
There is difference b/w allowance and reimbursement...if its a reimbursement then there is no limit..but for allowance exampt upto rs 800 p/m
agree with ashutosh view
Transport expenses exempt upto Rs.800 pm for commuting between place of residence & duty.
Conveyance allowance is given for expenses incurred in performance of official duty. Then here as per query it says coming to office & office related activity then it should be least of actual received or incurred na ?
an employer has paid 30 % of the basic salary of employee as a conveyance allowance?
Is it fully exempt or taxable?
an employer has paid 30 % of the basic salary of employee as a conveyance allowance?
Is it fully exempt or taxable?
There differnce in Reimbursement (Expenses) and Allowances. The assessee can claim Rs. 800 p.m. Yearly Rs.9600 as Conveyance Allowance as per section 10 (14). And conveyance Reimbursement or Expenses can claim from Employer as per actual expenses incurred. So please keep in mind about the reimbursement and Allowances.
If you get salary as per below
Basic 10000p.m.
Conveyance 2000p.m.
DA 5000 p.m.
HRA 7000 P.M
TOTAL SALARY RS. 24000P.M.
Then you can claim in only Rs. 800 p.m. as deduction as per Income Tax Act and Balance Rs. 1200p.m.(Rs. 2000-Rs800) is Taxable.
but in case of Conveyance Expenses / Reimbursement it can be claim as per actual incurred. ok..... I think you get your answer..
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