Conveyance Allowance Calculator
Calculate your travel allowance and tax exemption as per Indian Income Tax rules
Conveyance Allowance Calculation
Detailed Breakdown
Conveyance Allowance Tax Rules
Income Tax Rules (Section 10(14))
- Exemption Limit: ₹1,600 per month (₹19,200 per annum)
- Condition: Must be actually incurred for office commute
- Documentation: Bills/receipts not mandatory but recommended
- Mode: Both public and private transport covered
Exemption Based on Transport Mode
| Transport Mode | Monthly Exemption | Conditions |
|---|---|---|
| Public Transport | ₹1,600 | Bus, Train, Metro tickets |
| Personal Vehicle | ₹1,600 | Fuel, maintenance bills |
| Company Transport | Full exemption | No taxable component |
How Calculation Works
Formula Used:
Monthly Travel Cost =
(Daily Distance × Working Days × Fuel Rate ÷ Mileage) + Maintenance + Toll
Standard Mileage Rates:
- Two Wheeler: 40-50 km/liter
- Small Car: 15-20 km/liter
- Medium Car: 12-15 km/liter
- Large Car: 8-12 km/liter
Example Calculation:
For 20 km daily travel × 22 days = 440 km/month
Small car (15 km/liter) = 440 ÷ 15 = 29.33 liters
Fuel cost = 29.33 × ₹90 = ₹2,640
Add maintenance (₹640) + toll (₹800) = ₹4,080
Frequently Asked Questions
What is conveyance allowance?
Conveyance allowance is a component of salary provided to employees to cover their travel expenses between home and workplace. It's partially tax-exempt up to ₹1,600 per month.
Is conveyance allowance fully tax-exempt?
No, only ₹1,600 per month (₹19,200 per annum) is tax-exempt under Section 10(14) of Income Tax Act. Any amount above this limit is taxable.
Do I need to submit bills for exemption?
While bills are not mandatory for claiming exemption up to ₹1,600 per month, it's recommended to maintain records in case of tax scrutiny.
Can I claim both conveyance and medical allowance?
Yes, conveyance allowance and medical allowance are separate components and can both be claimed as per their respective exemption limits.
What if my actual travel expense is less than ₹1,600?
You can still claim full exemption of ₹1,600 per month, regardless of your actual expense, as long as you're incurring some travel cost.
Is fuel reimbursement different from conveyance?
Yes, fuel reimbursement is for official travel during work, while conveyance allowance is specifically for home-to-office commute.