What is the 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.

What is the conveyance allowance in India?

Conveyance Allowance (also known as Transport Allowance) is provided by employer to employee for meeting employee transportation cost from residence to workplace. It is exempt upto Rs. 19,200 per annum (Rs. 1600/month) under Sec 10 of the Income Tax Act.

What is conveyance allowance in payslip?

Conveyance allowance, also known as transport allowance, is a kind of allowance offered by employers to their employees to compensate for their travel expense to and from their residence and workplace. 1,600 from it as conveyance allowance and claim tax exemption on it.

How much is the conveyance allowance?

The payment is calculated using the number of days a student actually attends school, multiplied by the kilometres travelled and the conveyance allowance rate of 21.51 cents per kilometre (effective from Term 3, 2019). Conveyance Allowances are paid in arrears as a lump sum at the end of each school term.

Is there a limit on conveyance allowance in India?

Section 10 (14) of the Income Tax Act and Rule 2BB of Income Tax Rules have capped the conveyance allowance exemption limit at Rs. 1,600 per month or Rs. 19,200 a year. Prior to April 2015, the taxation exemption limit was set at Rs. 800 per month or Rs. 9,600 a year.

Are there special exemptions for conveyance allowances?

Excess amount paid above the conveyance allowance limit is charged to tax under the head Income from Salaries. The exemption can be claimed by an individual salaried employee. Special Exemption Cases: The Income Tax exemption limit for orthopedically handicapped and blind people is Rs. 3200 per month.

How much can I substitute for conveyance allowance?

If the individual is given a special allowance, which is fully taxable, then he or she can substitute Rs. 1,600 from it as conveyance allowance and claim tax exemption on it.

Which is the maximum limit for conveyance allowance?

As per the Income Tax Act Section 10 (14) (ii) and Rule 2BB, the Conveyance Allowance is allowed for the exemption of Rs. 1600 per month. The maximum limit of the IT exemption is Rs. 19,200 per year. Excess amount paid above the conveyance allowance limit is charged to tax under the head Income from Salaries.