Tax planning on Conveyance Allowance


Conveyance Allowance

Rs 800/- per month is allowed as Conveyance Allowance ie Rs 9,600/- pa. No Bills are required for this amount.

( In Union Budget 2015 , limit of Rs 800 pm is increased to Rs 1600 pm )


All Employees who are not coming through company provided transport, can avail of this benefit.

Queries on Conveyance Allowance:


1. My Company, provides Cabs for employees and I have been using this facility . Can I Claim benefit of Rs 800/- per month as well? Jaishree , Hyderabad
A ) You can not take both the benefit.

2. I am getting petrol reimbursement from the company, will i get benefit of Rs 800 /- p m as well ? Shefali , Gurgaon
A ) No, You can claim any one of these.

42 Responses to Tax planning on Conveyance Allowance

  1. hrbhavsar says:

    i have received as a conveyence allownance monthly rs. 1600 , please say to me i how many deduction in

  2. laiju cherian says:

    I am getting 600/- per month as physically handicapped persons conveyance allowance. Can i deduct the same while calculating tax

  3. manju says:

    I am getting conveyance allowance of 3000/-per month. Can i avail tax benefit on whole amount if i submit fuel bills.

    • Income Tax Buddy says:

      Manju, Unfortunately Conveyance allowance limit is Rs 800/-. You will only get Income tax benefit of upto Rs 800/-

  4. Pushkal Gupta says:

    I am not getting any conveyance allowance. Can I get income tax benefit on declaration basis that I spend 800 pa on travel ?

    • Income Tax Buddy says:

      Pushkal, Conveyance allowance is now allowed on declaration basis, it has to be added in your salary breakup. Ask your employer to revise the salary break up and include convaneace allowance.

  5. JP says:

    Can i show ,credit card receipt (for petrol bill tat has paid through card) for income tax rebate ,i am getting 6k/month for the same.
    My CA is saying only credit card receipt will not work,petrol bill will work.

  6. nagaraj says:

    my question is whether conveyance allowance and driver allowance(car fuel,maintenance) are same.
    2.Can employee avail both the allowance in the same month or not.please help me with this queries
    3.we are already providing conveyance allowance to employees and asking us to provide driver allowance for tax exemption ,.is this applicable?


    I am getting conveyance allowance of 11 months @ 3000 p.m. Please suggest me that will I get tax benefit of Rs. 9600 0r 8800.

  8. Akshay Sankhe says:

    This is right or wrong—
    Conveyance exemption: Exemption on conveyance is calculated on the basis of each day. For eg. Exemption of 800 per month is proportioned as per paid days of employee. If an employee has 20 paid days, she would get exemption as (800/30)*20=533 and not 800 even if her earning under conveyance head is 1000.

  9. pradeep says:

    hi …which column is to be filled while claiming the income tax return e filing for transport allowance for 9600/- there is no specific column visible for this allowance in itr site while e- filing the tax…pls guide…

    • Tax Dost says:

      This is not required to be filled any where

      • Akhilesh Samanta says:

        If this is not required to be filled any where then how will I be able to take the benefit? Am I supposed to deduct Rs 9600 directly from my Income and put the balance amount in ” Income from Salary / Pension ” in the return? Then there will be a mismatch with Form 26 AS with my Retrun. How to handle?
        Same situation is with Professional Tax

  10. Ashok Nikam says:

    Sir can you fwd me a list of allawances in army persons on which tax is exempted

  11. VK Bhatnagar says:

    in order to avail tax rebate on transport allowance can i deduct transport allowance i.e. 9600 from my gross salary or taxable income while filling ITR.

    • Tax Dost says:

      Conveyance allowance should already be deducted in your form 16 to maximum of Rs 9600 /-pa. no need to deduct it again.

  12. Ramji Shrivastava says:

    I am govt. servant. Govt pay 180/m conveyance. How much I can take benefit in income tax return. Rs. 800/month or actual 180/moth

  13. Ganesh says:

    Hi..I am a new joinee in an organisation.For current month they are not providing the cab facility…So how should I redeem my conveyance allowance for this month.and what are the proofs I have to submit??

    • Tax Dost says:

      Conveyance allowance till Rs 800 pm is not taxable. Your are not required to show any proof for this. Please check if the same is shown in break up of your salary. If yes, your company while calculating income tax will not include in your total income.

  14. Ajay says:

    I am drawing salary from two employers and each gives me Rs. 800 per month as transport allowance. Will I get the exemption of Rs. 9600 per annum or Rs, 9600 x 2 per annum?

    • Tax Dost says:

      You will get exemption from only one employer. Please note that in Budget 2015, Conveyance limit is increased to Rs 1600 pm.

  15. Santosh says:

    In ITR2, where to mention the figure of 9600 to claim exemption ?

  16. Nishit Patel says:

    If my employer is still paying me 800 pm for conv allowance, can how can i claim 1600*12 during current year.

  17. srinath says:

    My employer provides Cab facility to commute to office and deducts sum of Rs. 5600 per month from salary. Also this deduction is shown in the payslip. Based on the payslip can we avail IT exemption 100% for this expenses.

  18. Gaurav says:

    Hi, I have a Conveyance allowance component as 800rs per month. I need to know how to avail the tax exemption for the same? Do, I need to provide any bills for the same? I don’t use company provided cab, I come by my own car.

  19. Jaykrishnan says:

    My company pays an amount of Rs.495/- towards maintenance of motor cycle and cost of 10 liters of perol on production of bill. Is this amount is taxable or not.

  20. Pushkal Gupta says:

    I have got arrears of conveyance allowance of 4 years and it was given in 2 months that too from June salary onwards. So out of 12 months, I did not get any allowance for 3 months. In 4th month I got Rs. 9000 and in 5th month I got Rs. 5000. From 6th onwards, I got Rs 400 per month. How much is the exempt?

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