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 Avatar

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

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      You will be allowed only Rs 800 p.m for conveyance allowance

  2. laiju cherian Avatar
    laiju cherian

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

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      Since Conveyance allowance received by you is less then, maximum limit of Rs 800/- full amount is exempt.

  3. manju Avatar

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

    1. Income Tax Buddy Avatar
      Income Tax Buddy

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

  4. Pushkal Gupta Avatar
    Pushkal Gupta

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

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      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 Avatar

    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.

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      Petrol Receipt is required to claim the benefit

  6. nagaraj Avatar

    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?

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      Conveyance Allowance and driver are not same, They can not be claimed together


    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.

    1. Tax Dost Avatar
      Tax Dost

      You will get conveyance allowance @ Rs 800 pm ie Rs 8800/- only for 11 months of receipt.

    2. A.D.BALAKRISHNAN Avatar

      I am getting conveyance allowance of 11 months @1000p.m please suggest that will get tax benefit of rs.11000 or rs.9800.U/S16 deduction for conveyance allowance

      1. Tax Dost Avatar
        Tax Dost

        You will get benefit of 800*11 ie Rs 8800/-

  8. Akshay Sankhe Avatar
    Akshay Sankhe

    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.

    1. Tax Dost Avatar
      Tax Dost

      This is right. Employers give salary according to actual days worked in month.

  9. pradeep Avatar

    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…

    1. Tax Dost Avatar
      Tax Dost

      This is not required to be filled any where

      1. Akhilesh Samanta Avatar
        Akhilesh Samanta

        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

        1. Tax Dost Avatar
          Tax Dost

          You can take the benefit of conyeyance allowance, if this is part of salary component.

  10. Ashok Nikam Avatar
    Ashok Nikam

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

  11. VK Bhatnagar Avatar
    VK Bhatnagar

    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.

    1. Tax Dost Avatar
      Tax Dost

      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 Avatar
    Ramji Shrivastava

    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

    1. Tax Dost Avatar
      Tax Dost

      You can only take 180 pm benefit, ie actual conveyance allowance paid to you.

  13. Ganesh Avatar

    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??

    1. Tax Dost Avatar
      Tax Dost

      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 Avatar

    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?

    1. Tax Dost Avatar
      Tax Dost

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

  15. Santosh Avatar

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

    1. Tax Dost Avatar

      You are not required to mention conveyance allowance in your income tax return.

  16. Nishit Patel Avatar
    Nishit Patel

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

    1. Tax Dost Avatar

      Sorry, this option is not available to you. Ask your employer to revise the salary structure.

  17. srinath Avatar

    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.

    1. Tax Dost Avatar

      You can not claim any tax benefit from Cab deduction by your employer.

  18. Gaurav Avatar

    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.

    1. Tax Dost Avatar

      You Dont need to provide any proofs. Your employer will consider Rs 800 benefit and will no deduct any income tax on it.

  19. Jaykrishnan Avatar

    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.

    1. Tax Dost Avatar

      This Allowance is for maintenance of bike and os in nature of reimbursement, this amount is not taxable.

  20. Pushkal Gupta Avatar
    Pushkal Gupta

    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?