Conveyance Allowance in India
Conveyance allowance, also called Transport Allowance is a type of allowance offered to employees of a company to compensate for their travel from residence to and from respective workplace location. Allowances are generally offered to employees on top of their basic salary component and may or may not be taxable as per the Income Tax Act.
Conveyance Allowance Limit for FY 2016-17 & AY 2017-18
There is no limit on the amount of conveyance allowance a company can offer to its employees.
Conveyance Allowances to Central Government Employees
| Average monthly travel on official duty | Rates of conveyance allowance p.m. for journey by | |
|---|---|---|
| owned motor car | other modes of conveyance | |
| 201-300 Km | Rs.1,120 | Rs.370 |
| 301-450 Km | Rs.1,680 | Rs.480 |
| 451-600 Km | Rs.2,070 | Rs.640 |
What is the conveyance allowance provided to central government employees who travel by their own vehicle?
Central government employees who travel using their own motor car are offered Rs.1,680 if the distance is between 201 and 300 km, Rs.2,520 if the distance travelled is between 301 and 450 km, Rs.2,980 if the distance travelled is between 451 and 600 km, Rs.3,646 if the distance travelled is between 601 and 800 km, and Rs.4,500, if the distance travelled, is more than 800 km.
What is the conveyance allowance provided to central government employees who travel through public transport?
Central government employees who travel using other modes of transport will be offered Rs.556 if the distance is between 201 and 300 km, Rs.720 if the distance travelled is between 301 and 450 km, Rs.960 if the distance travelled between 451 and 600 km, Rs.1,126 if the distance travelled is between 601 and 800 km, and Rs.1,276, if the distance travelled, is more than 800 km.
