{"id":7941,"date":"2025-07-16T12:59:51","date_gmt":"2025-07-16T12:59:51","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7941"},"modified":"2025-07-16T12:59:52","modified_gmt":"2025-07-16T12:59:52","slug":"conveyance-allowance","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/conveyance-allowance\/","title":{"rendered":"Conveyance Allowance"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/conveyance-allowance\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Conveyance Allowance<\/a><\/strong> is the money your employer gives you to cover <strong>travel <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">expenses<\/a><\/strong> from <strong>home to office and back<\/strong>. It&#x2019;s a part of your salary package and meant to help you commute daily without spending from your own pocket.<\/p>\n\n\n\n<p><em>Think of it as a &#x201C;travel-to-work&#x201D; allowance.<\/em><\/p>\n\n\n\n<h2 id=\"key-features\" class=\"wp-block-heading\">Key Features<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Given <strong>monthly<\/strong> with salary<\/li>\n\n\n\n<li>Mostly paid as a <strong>fixed amount<\/strong><\/li>\n\n\n\n<li>May or may not be <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>ed based on how it&rsquo;s structured<\/li>\n\n\n\n<li>It&#x2019;s <strong>different<\/strong> from travel allowance (which covers business trips)<\/li>\n<\/ul>\n\n\n\n<h2 id=\"tax-exemption-rules-as-per-income-tax-act\" class=\"wp-block-heading\">Tax Exemption Rules (as per <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a>)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Until FY 2018-19:<\/strong> &#x20B9;1,600\/month (&#x20B9;19,200\/year) was <strong>tax-free<\/strong> under Section 10(14)(ii) and Rule 2BB.<\/li>\n\n\n\n<li><strong>From FY 2019-20 onwards:<\/strong> This exemption was <strong>removed<\/strong> after <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/standard-deduction\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">standard deduction<\/a><\/strong> of &#x20B9;50,000\/year was introduced.<\/li>\n<\/ul>\n\n\n\n<p>So, today:<\/p>\n\n\n\n<p>If your salary includes conveyance allowance, it is <strong>fully taxable<\/strong>,<br>unless you&#x2019;re in specific roles (like judges, disabled employees) with different exemption provisions.<\/p>\n\n\n\n<h2 id=\"special-cases-with-tax-benefits\" class=\"wp-block-heading\">Special Cases with Tax Benefits<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Blind or orthopedically disabled employees<\/strong> can claim <strong>up to &#x20B9;3,200\/month<\/strong> as tax-free conveyance allowance (under Section 10(14)).<\/li>\n\n\n\n<li>Government employees and certain central services may have different rules depending on their job structure.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"real-life-example\" class=\"wp-block-heading\">Real-Life Example<\/h2>\n\n\n\n<p>If your employer gives you &#x20B9;1,600\/month as conveyance allowance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Earlier (before 2019):<\/strong> Entire &#x20B9;1,600 could be tax-free.<\/li>\n\n\n\n<li><strong>Now:<\/strong> It&#x2019;s counted as <strong>part of your taxable income<\/strong> unless special conditions apply.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"quick-summary\" class=\"wp-block-heading\">Quick Summary<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Feature<\/strong><\/th><th><strong>Details<\/strong><\/th><\/tr><\/thead><tbody><tr><td>What it is<\/td><td>Allowance for daily commute to work<\/td><\/tr><tr><td>Paid by<\/td><td>Employer<\/td><\/tr><tr><td>Tax exemption<\/td><td>No standard exemption now (post-2019)<\/td><\/tr><tr><td>Special exemptions<\/td><td>Yes, for disabled or special cases<\/td><\/tr><tr><td>Tax treatment now<\/td><td>Fully taxable for most employees<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"final-takeaway\" class=\"wp-block-heading\">Final Takeaway<\/h2>\n\n\n\n<p>Conveyance allowance once helped you save on tax, but now it&#x2019;s mostly just part of your regular taxable salary. Still, it&#x2019;s good to know how it appears in your payslip&#x2014;and if you&#x2019;re eligible for any special exemptions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Conveyance Allowance is the money your employer gives you to cover travel expe<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">nse<\/a>s from home to office and back. It&#x2019;s a part of your salary package and meant to help you commute daily without spending from your own pocket. Think of it as a &#x201C;travel-to-work&#x201D; allowance. Key Features Tax Exemption Rules (as per <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7941","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7941\/revisions"}],"predecessor-version":[{"id":7942,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7941\/revisions\/7942"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}