New Tax Regime Comes Into Force

Exempts conveyance allowance from income-tax net

The Central Board of Direct Taxes (CBDT) has amended the official rules in order to allow individuals under the new lower tax regime to claim income tax exemption on conveyance allowance received from employers.

These include any allowance granted to meet the cost of travel on tour or on transfer. Any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty is eligible for income tax exemption.

It also includes exemption for any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit, provided that free conveyance is not provided by the employer.