Conveyance allowance: What is Conveyance Allowance

What is Conveyance Allowance? Conveyance allowance is a special allowance to cover their expenses while travelling to perform office or employment duties . They are usually offered on top of their basic pay and are eligible for tax deductions up to the actual allowances received. Conveyance allowance is the amount an employer pays to cover the cost of commuting between your home and office . It is typically a fixed monthly component in your salary structure. Historically, conveyance allowance enjoyed a separate income tax exemption (up to ₹1,600 per month for most employees) under Section 10 (14) of the Income Tax Act. Conveyance allowance is a fixed sum of money paid by an employer to an employee to cover commuting expenses between home and workplace. This allowance forms part of the salary and is commonly listed under 'Special Allowance' in the salary slip format. It helps employees offset the daily cost of travel, such as bus, metro, or auto fares. Cenetral Pay Commission Home Implementation of 7th CPC recommendations on Allownaces - Conveyance Allowance