What is local conveyance reimbursement?
Transport Allowance or Conveyance Allowance is the allowance for the employee’s travel from their residence to their workplace. The Local Conveyance Policy aims to establish guidelines for reimbursement of conveyance expenses incurred by an employee for using Public Transportation/ own conveyance for official use.
What is local conveyance?
Local conveyance allowance: It is also called “Transport Allowance”, It is a type of allowance offered to employees of a company to compensate for their travel from residence to and from respective workplace location. It is paid by an employer only if the there is no transportation provided by the employer.
What comes under local conveyance?
From a two wheeler to a four wheeler belonging to your employee, needing a mileage plan of per km/mile. Or it could be in a mass public transport like a Bus, Metro, Suburban train or Ferry. The conveyance expense could be a trip based cost or a seasonal/monthly pass.
What is the maximum limit of conveyance allowance?
The conveyance allowance exemption limit is Rs. 1600 per month (Rs. 19200 per year). Any amount paid above the conveyance allowance limit is charged to tax under the head Income from Salaries.
How do I claim conveyance allowance?
Exemption on conveyance allowance can be claimed under Section 10(14(ii)) of the Income Tax Act. The maximum amount that can be claimed in a year is Rs. 19,200 (Rs. 1,600 per month).
How do you calculate conveyance?
How to Calculate Conveyance Allowance?
- For instance, the travel allowance for a month offered by the employer is Rs. 2,500.
- Given the Conveyance Allowance tax exemption limit, you need to pay tax (if applicable) on Rs. 2,500 – Rs. 1,600 = Rs. 900.
Is conveyance part of salary?
A: Conveyance allowance is paid by the employer as a part of your salary over and above your basic salary to help you meet the expenses for your commute to work. There are no difficult calculations required. You can check the conveyance allowance paid to you in the year and calculate the total amount.
What is the maximum conveyance allowance?
How do I claim conveyance?
How do you get conveyance allowance?
For example, if a company is offering a special allowance of Rs. 5,000 per month (100% taxable), Rs. 1,600 out of the total of Rs. 5,000 can be allocated as conveyance allowance and tax exemption can be claimed on it.
Where do I claim transport allowance?
Transport Allowance is covered by section 10(14)(ii) of the Income Tax Act. It is the tax-exempt to the extent of the amount notified by the Income Tax Department. Actual expenditure is not required in order to claim the tax exemption. Conveyance Allowance is covered by section 10 (14)(i) of the Income Tax Act.
Is dearness allowance and conveyance allowance same?
For example, Conveyance Allowance is paid to reimburse expenses incurred for commuting to the workplace. Medical Allowance. Dearness Allowance. Leave Travel Allowance; also called as Leave Travel Concession.