dear experts, can u please let me know if transport and conveyance allowance are same or different.i have seen a salary slip having both of the allowances.kindly advice
From India, Chennai
1From India, Chennai
Dear Mridula
Transportation allowance is travel expenses of an employee to commute from home to office and back. This is usually part of the salary and as per IT rules and in most companies, re termed as Conveyance allowance also which is in a month upto Rs 800 exempted from IT without any bills. This amount of exemption is proposed for an increase from Rs.800 to Rs.1600 per month and is awaiting approval from Government.
Best wishes
Jayaprakash
From India, Madras
Transportation allowance is travel expenses of an employee to commute from home to office and back. This is usually part of the salary and as per IT rules and in most companies, re termed as Conveyance allowance also which is in a month upto Rs 800 exempted from IT without any bills. This amount of exemption is proposed for an increase from Rs.800 to Rs.1600 per month and is awaiting approval from Government.
Best wishes
Jayaprakash
From India, Madras
I think the best person to explain the difference is the HR or Payroll manager in your office. Each company has a different rule and it is not possible for a third party to give you an answer.
From India, Mumbai
From India, Mumbai
Dear Mridula
The Transport allowance or Conveyance allowance is an allowance granted to an employee to meet his/her expenditure for the purpose of commuting between the place of residence & duty. Transport allowance is exempt to the extent to Rs 1,600 per month, i.e. upto Rs 19,200 is exempt for a year. Any amount paid over this limit is taxable. For example if an employee is getting Rs 3,000 as Transport or Conveyance allowance every month, Rs 1,600 is exempt and Rs 1,400 is taxable per month. Thus out of Rs 36,000 transport allowance received for the year, Rs 19,200 would be exempt and Rs 16,800 would be taxable. The exemption limit has already been increased from Rs. 800 to Rs. 1,600 w.e.f. 1 April 2015.
From India, New Delhi
The Transport allowance or Conveyance allowance is an allowance granted to an employee to meet his/her expenditure for the purpose of commuting between the place of residence & duty. Transport allowance is exempt to the extent to Rs 1,600 per month, i.e. upto Rs 19,200 is exempt for a year. Any amount paid over this limit is taxable. For example if an employee is getting Rs 3,000 as Transport or Conveyance allowance every month, Rs 1,600 is exempt and Rs 1,400 is taxable per month. Thus out of Rs 36,000 transport allowance received for the year, Rs 19,200 would be exempt and Rs 16,800 would be taxable. The exemption limit has already been increased from Rs. 800 to Rs. 1,600 w.e.f. 1 April 2015.
From India, New Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Local Conveyance Policy.doc
Experts Tips to Make REsume1.jpg
Case Studies in Performance Management - A Guide from the Experts.[2006.I SBN0471776599]. pdf