{"id":7163,"date":"2024-10-24T16:59:27","date_gmt":"2024-10-24T11:29:27","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=7163"},"modified":"2024-10-25T13:46:38","modified_gmt":"2024-10-25T08:16:38","slug":"conveyance-allowance","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/","title":{"rendered":"Conveyance Allowance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d8b97083637\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d8b97083637\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#What-is-Conveyance-Allowance\" >What is Conveyance Allowance?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#Conveyance-Allowance-Features\" >Conveyance Allowance Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#Conveyance-Allowance-Exemption-from-Tax\" >Conveyance Allowance Exemption from Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#How-to-Calculate-Conveyance-Allowance\" >How to Calculate Conveyance Allowance?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#Conveyance-Allowance-Special-Considerations\" >Conveyance Allowance Special Considerations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#Travel-Allowances-for-Central-Government-Employees\" >Travel Allowances for Central Government Employees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#Automate-Complex-Payroll-Calculation\" >Automate Complex Payroll Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/conveyance-allowance\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-Conveyance-Allowance\"><\/span><b>What is Conveyance Allowance?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Conveyance allowance<span style=\"font-weight: 400;\"> is allowance offered by employers to cover the cost of travelling from home to the workplace. It is offered by companies that do not provide transportation facilities.\u00a0<\/span><span style=\"font-weight: 400;\">It falls under the purview of CBDT (Central Board of Direct Taxes).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CBDT is a statutory body that reports directly to the Revenue Department of the Government of India. It is responsible for revising the rules associated with conveyance allowance periodically.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conveyance-Allowance-Features\"><\/span>Conveyance Allowance Features<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul data-sourcepos=\"3:1-5:142\">\n<li class=\"animating\" data-sourcepos=\"3:1-3:161\"><strong class=\"animating\">Eligibility:<\/strong><span class=\"animating\">\u00a0Conveyance allowance is payable to salaried employees to compensate them for the expenses they incur in traveling to and from their workplace.<\/span><\/li>\n<li class=\"animating\" data-sourcepos=\"4:1-4:216\"><strong class=\"animating\">Exemption limit:<\/strong><span class=\"animating\">\u00a0The conveyance allowance exemption limit for salaried individuals is Rs 1,<\/span><span class=\"animating\">600 per month or Rs 19,<\/span><span class=\"animating\">200 per annum.<\/span><span class=\"animating\">\u00a0This exemption is available under Section 10(14)(ii) of the Income Tax Act,<\/span><span class=\"animating\">\u00a01961.<\/span><\/li>\n<li class=\"animating\" data-sourcepos=\"5:1-5:142\"><strong class=\"animating\">Calculation:<\/strong><span class=\"animating\">\u00a0The conveyance allowance is calculated on the basis of the actual amount of conveyance allowance received from the employer.<\/span><span class=\"animating\">\u00a0If the actual amount of conveyance allowance exceeds the exemption limit,<\/span><span class=\"animating\">\u00a0the excess amount is taxable.<\/span><\/li>\n<li class=\"animating\" data-sourcepos=\"6:1-8:142\"><strong class=\"animating\">Documents required:<\/strong><span class=\"animating\">\u00a0To claim conveyance allowance exemption,<\/span><span class=\"animating\">\u00a0salaried individuals must submit the following documents along with their income tax return (ITR):<\/span>\n<ul data-sourcepos=\"7:5-8:142\">\n<li class=\"animating\" data-sourcepos=\"7:5-7:205\"><span class=\"animating\">Form 10D:<\/span><span class=\"animating\">\u00a0This form must be filled out and signed by the employer.<\/span><span class=\"animating\">\u00a0It must contain information such as the employee&#8217;s name,<\/span><span class=\"animating\">\u00a0PAN,<\/span><span class=\"animating\">\u00a0and the amount of conveyance allowance paid during the financial year.<\/span><\/li>\n<li class=\"animating\" data-sourcepos=\"8:5-8:142\"><span class=\"animating\">Documentary proof of expenditure on conveyance:<\/span><span class=\"animating\">\u00a0This could include receipts for fuel,<\/span><span class=\"animating\">\u00a0tolls,<\/span><span class=\"animating\">\u00a0parking,<\/span><span class=\"animating\">\u00a0and other travel-related expenses.<\/span><\/li>\n<\/ul>\n<\/li>\n<li class=\"animating\" data-sourcepos=\"9:1-9:14\"><strong class=\"animating\">Taxability:<\/strong><span class=\"animating\">\u00a0The conveyance allowance exemption is available only to salaried individuals.<\/span><span class=\"animating\">\u00a0Self-employed individuals are not eligible for this exemption.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Conveyance-Allowance-Exemption-from-Tax\"><\/span><b>Conveyance Allowance Exemption from Tax<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"1:1-1:185\">Conveyance allowance exemption from tax <span class=\"animating\">allows employees to claim a certain amount of their conveyance allowance as tax-exempt income.<\/span><\/p>\n<p data-sourcepos=\"3:1-3:89\"><span class=\"animating\">The<strong> exemption limit for conveyance allowance is Rs 1,<\/strong><\/span><strong><span class=\"animating\">600 per month or Rs 19,<\/span><\/strong><span class=\"animating\"><strong>200 per annum<\/strong>.<\/span><span class=\"animating\"> This means that employees can claim up to Rs 1,<\/span><span class=\"animating\">600 per month or Rs 19,<\/span><span class=\"animating\">200 per annum of their conveyance allowance as tax-exempt income.<\/span><\/p>\n<p data-sourcepos=\"5:1-5:117\"><span class=\"animating\">To claim the conveyance allowance exemption,<\/span><span class=\"animating\"> employees must submit <strong>Form 10D<\/strong> along with their<strong> income tax return<\/strong>.<\/span><span class=\"animating\"> Form 10D must be signed by the employer and must contain information such as the employee&#8217;s name,<\/span><span class=\"animating\"> PAN,<\/span><span class=\"animating\"> and the amount of conveyance allowance paid during the financial year.<\/span><\/p>\n<p data-sourcepos=\"7:1-7:160\"><span class=\"animating\">Employees must also maintain<strong> documentary proof<\/strong> of their expenditure on conveyance,<\/span><span class=\"animating\"> such as receipts for fuel,<\/span><span class=\"animating\"> tolls,<\/span><span class=\"animating\"> parking,<\/span><span class=\"animating\"> and other travel-related expenses.<\/span><\/p>\n<p data-sourcepos=\"9:1-9:138\"><span class=\"animating\">The conveyance allowance exemption is <strong>available only to salaried employees<\/strong>.<\/span><span class=\"animating\"> Self-employed individuals are not eligible for this exemption.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-Conveyance-Allowance\"><\/span><b>How to Calculate Conveyance Allowance?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Conveyance allowance is calculated as a percentage of basic salary. Companies can offer any amount of conveyance allowance. The tax exemption limit for conveyance allowance is Rs 1,600 per month. Any amount exceeding this limit becomes taxable.<\/p>\n<p><span style=\"font-weight: 400;\">Let us understand with an example. Suppose ABC Company offers its employees a special allowance of Rs. 6000 monthly. This amount is entirely taxable. Now, an employee can consider Rs. 1,600 from Rs. 6000 as his conveyance allowance and seek tax exemption for it. However, it is a good idea to consult a tax expert before claiming tax exemptions for conveyance allowance.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conveyance-Allowance-Special-Considerations\"><\/span><b>Conveyance Allowance Special Considerations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Listed below are the essential things to remember:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The amount provided as <\/span>conveyance allowance<span style=\"font-weight: 400;\"> varies from one company to the other. But, the exemption limit remains the same.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Salaried persons do not need to provide special documents to receive a conveyance allowance.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This allowance can fall under special allowances.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If employers provide transportation facilities, then a conveyance allowance won\u2019t be provided.\u00a0<\/span><\/li>\n<li aria-level=\"1\">The tax exemption limit for visually impaired or physically disabled employees is set at Rs 3,200 per month.<\/li>\n<li aria-level=\"1\">UPSC members, or members of the United Public Service Commission do not have to pay tax as per Section 10(45) of the Income Tax Act.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Government employees receive a consolidated travel allowance for work-related transportation facilities. It substitutes every allowance for transit required for the official to carry out his duty effortlessly.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Travel-Allowances-for-Central-Government-Employees\"><\/span>Travel Allowances for Central Government Employees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Central government employees are eligible to receive allowance to pay for travel when on duty. Below is the allowances per km travelled.<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Average distance covered in a month on duty<\/b><\/td>\n<td><b>Allowance for personal vehicles<\/b><\/td>\n<td><b>Allowance for other travel modes<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">201 to 300 km<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 1,680<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 556<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">301 to 450 km<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 2,520<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 720<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">451 to 600 km<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 2,980<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 960<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">601 to 800 km<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 3,646<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 1,126<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">800 km+<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 4,500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs 1,276<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Automate-Complex-Payroll-Calculation\"><\/span><b>Automate Complex Payroll Calculation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_conveyance_allowance\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll<\/span><\/a><span style=\"font-weight: 400;\"> is an all-in-one payroll software that automatically bifurcates CTC into basic, HRA, special allowance, and more.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6349\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2022\/06\/New-file.gif\" alt=\"salary breakup structure\" width=\"1224\" height=\"668\" \/><\/span><span style=\"font-weight: 400;\">All you have to do is just set a date, and your employees get paid on time. Yes, we calculate and disburse salaries into employee bank accounts in just 3 clicks.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_conveyance_allowance\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX Payroll<\/a><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Other features of RazorpayX Payroll include:\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Automatic statutory compliance payments and filings like PF, PT, and TDS<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Salary calculations and transfers<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Leave and attendance system<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Reimbursements requests, approval and payment<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Multiple HR letter generation like offer letter<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Integrated with leading software like -Plum, Zaggle, Freshteams, and more\u00a0<\/span><\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=blog_cta_conveyance_allowance\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Try it for free!<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<p>Companies grant conveyance allowances to their employees to cover travel expenses to and from the office. Read this blog post for more.<\/p>\n","protected":false},"author":151156494,"featured_media":14312,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404,3476],"tags":[3623],"class_list":{"0":"post-7163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"category-payroll-glossary","9":"tag-conveyance-allowance"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/7163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156494"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=7163"}],"version-history":[{"count":7,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/7163\/revisions"}],"predecessor-version":[{"id":14311,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/7163\/revisions\/14311"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/14312"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=7163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=7163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=7163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}