Question

How to calculate conveyance allowance in income tax?

Answer 1

Answer:

Employer offers conveyance allowance to its employees for travelling from home to workplace & vice-versa. It is taxable if it crosses the exemption limit.

 

The employers offer many allowances to their employees. One such allowance is given for conveyance. The allowance given to the employees for travelling from residence to their workplace and vice versa is termed as conveyance allowance. This allowance is in addition to the basic salary structure that the employee receives. The employer generally offers conveyance allowance in case it does not offer any transport facility to its employees.