I joined an organization on 01 June 2014. Now, for F.Y 2014-2015, the conveyance allowance in the amount of ₹ 9,600/- annually is tax exempted. Is this applicable to me too OR I can claim tax exemption for conveyance allowance in the amount of ₹ 8,000/- i.e. 10 months of employment June 2014 to March 2015. Please advise.
Exemption for Conveyance Allowance for Salaried Personnel
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Salaried employee queries tax exemption on conveyance allowance for 2014-2015; can claim full or partial amount. A salaried individual inquired about the tax exemption eligibility for conveyance allowance for the fiscal year 2014-2015, having joined their organization in June 2014. They questioned whether they could claim the full annual exemption of 9,600 or only 8,000 for the ten months of employment. A respondent advised that the individual could claim the exemption if the organization pays under the conveyance allowance head. Alternatively, they could file a return and seek a refund by submitting petrol bills. (AI Summary)
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TaxTMI