Hai All
I am working in an IT project on contract basis. Now I got an offer from another company. In their offer CTC consists of basic pay, HRA, conveyance allowance, gratuity and PF. This job require traveling so in addition to the conveyance allowance will I get traveling allowance? is these two allowances are different?
Muneer K.M
From India, Kochi
I am working in an IT project on contract basis. Now I got an offer from another company. In their offer CTC consists of basic pay, HRA, conveyance allowance, gratuity and PF. This job require traveling so in addition to the conveyance allowance will I get traveling allowance? is these two allowances are different?
Muneer K.M
From India, Kochi
Dear Muneer,
Obviously Conveyance Allowance and Travelling Allowance are different. Conveyance allowance is a standard earning head offered and is exempt to the exent of Rs.800/ month under IT rules. But travelling allowance will be totally exempt from IT because you actually incurr this expense and do not make any earning out of it. Each company has its own policy. Some companies pay auto fare, some others reimburse expense incurred by public transport and there are companies that reimburse a fixed sum for every Km travelled if the employee uses his own mode of transport and it differs between two wheeler and four wheeler.
Trust the matter is clarified
M.V.KANNAN
From India, Madras
257Obviously Conveyance Allowance and Travelling Allowance are different. Conveyance allowance is a standard earning head offered and is exempt to the exent of Rs.800/ month under IT rules. But travelling allowance will be totally exempt from IT because you actually incurr this expense and do not make any earning out of it. Each company has its own policy. Some companies pay auto fare, some others reimburse expense incurred by public transport and there are companies that reimburse a fixed sum for every Km travelled if the employee uses his own mode of transport and it differs between two wheeler and four wheeler.
Trust the matter is clarified
M.V.KANNAN
From India, Madras
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