What Is Conveyance Allowance?
5paisa Research Team
Last Updated: 19 Apr, 2023 05:29 PM IST

Content
- Introduction
- Conveyance Allowance Exemption
- Special Exemptions and Provisions
- Travel Allowances For Central Government Employees
- Recent Developments in Laws Governing Conveyance Allowance
Introduction
Companies require employees to travel to the office daily or for various business-related work. However, as the expenses incurred on travelling are not personal but for the company, the company is liable to reimburse the employee for all the incurred expenses. The reimbursed amount is called conveyance or travelling allowance.
A conveyance allowance is a payment or reimbursement made by an employer to their employees to cover their transportation costs incurred while travelling to and from work or for work-related purposes. It is usually a fixed amount provided monthly to employees to help them cover commuting expenses, such as fuel, public transportation, or other modes of transportation.
The amount of the conveyance allowance may vary depending on the employer's policy, the distance between the employee's residence and the workplace, and the mode of transportation used.
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Frequently Asked Questions
A person can claim a maximum deduction of Rs 1,600 per month or Rs 19,200 per year as a conveyance allowance.
A person who is visually impaired or physically disabled can claim a higher exemption of Rs 3,200 as a conveyance allowance.
The conveyance allowance provided to central government employees differs based on the total distance covered. The lowest allowance is Rs 1,680, while the highest is Rs 4,500.
The Indian government provides conveyance allowance to central government employees based on the distance they have covered using public transport. The lowest such allowance is Rs 556, while the highest applicable amount is Rs 1,276.
No, there is no option to claim a conveyance allowance if an employee opts for a company-provided transportation service.
Employers provide numerous allowances to their employees, such as house rent allowances, dearness allowances, medical allowances, children's education allowances, overtime allowances etc.
There is no limit to the amount an employer can pay their employees as a conveyance allowance. However, the tax exemption limit is Rs 1,600 monthly or Rs 19,200 annually.