Dear All I wanna know about Conveyance Allowance only Rs.800/- for any range of Salary of it would be different as per the Salary. Plz help me its urgent Thanking you in advance
From India, Bangalore
From India, Bangalore
Hello Hasnath,
For Conveyance allowance there is not any prescribe limit in any organization but for tax benefit its allowed for Max 8oo Rs per month, so most of the companies providing the Conveyance Allowance as 800 Rs for Tax benefit purpose.
So for Tax benefit companies providing 800 Rs.if in future Government will decide to provide more relaxation in Conveyance Allowance than limit will be change accordingly
Thanking you,
Regards,
Ashish
From India, Pune
175For Conveyance allowance there is not any prescribe limit in any organization but for tax benefit its allowed for Max 8oo Rs per month, so most of the companies providing the Conveyance Allowance as 800 Rs for Tax benefit purpose.
So for Tax benefit companies providing 800 Rs.if in future Government will decide to provide more relaxation in Conveyance Allowance than limit will be change accordingly
Thanking you,
Regards,
Ashish
From India, Pune
As rightly said by Ashish,
you can have conveyance distributed grade wise / designation wise.
At the end when we compute the tax liability, the tax authorities will allow an exemption of mere 800 rs per month for conveyance irrespective of the designation or irrespective of the mode of transport used.
This means that if I pay say 1500 Rs as conveyance to my employees, it is very much allowed... However when I would be calculating his tax liability and TDS, I will be able to give tax exemption only on 800 Rs and remaining 700 Rs will be taxed.
As a result, many companies stick to the standard 800 Rs per month as conveyance so that we can try and save the tax on the additional conveyance amount given to the employee...
Hope this clears your doubt...
From India, Mumbai
you can have conveyance distributed grade wise / designation wise.
At the end when we compute the tax liability, the tax authorities will allow an exemption of mere 800 rs per month for conveyance irrespective of the designation or irrespective of the mode of transport used.
This means that if I pay say 1500 Rs as conveyance to my employees, it is very much allowed... However when I would be calculating his tax liability and TDS, I will be able to give tax exemption only on 800 Rs and remaining 700 Rs will be taxed.
As a result, many companies stick to the standard 800 Rs per month as conveyance so that we can try and save the tax on the additional conveyance amount given to the employee...
Hope this clears your doubt...
From India, Mumbai
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Local Conveyance Policy.doc