Conveyance allowance and car facility, Income Tax

[HARSHA JOSHI]

Can an employee claim exemption u/s 10(14) of Rs.800/-p.m.being conveyance allowance while working out his taxable salary in addition to a NIL perquisite value towards car facility for commuting between his residence to a work place & back. employer pays FBT on vehicle fuel & maintenance expenses. so, practically can employer provide both in his salary brake-up while working out CTC.

Posts / Replies

[Rama Krishana]

I think no prohibition in the law, there is no probibition for available these two. But, now after removal of FBT and reintorduction of tax on perquisits, such type of tax plannings has limited role.