Conveyance Allowance as per 7th Pay Commission
Conveyance Allowance for AY 2020-21
Conveyance Allowance Income Tax Exemption Limit is Rs. 1600 per month for Central Government Employees
What says 7th Pay Commission about Conveyance Allowance?
Conveyance Allowance is paid to Doctors for visits to hospitals and dispensaries outside normal duty hours as well as for making domiciliary visits. It is also paid to those employees who maintain their
own Motor Car, Scooters, Motor Cycle, Moped and have to undertake frequent journeys on official business in their conveyance. The existing rates are as under:
(₹ per month)
|Average Monthly Travel on Official Duty||For Journeys by Own Motor Car||For Journeys by other Modes of Conveyance|
|> 800 km||4500||1276|
There are demands to fully index this allowance with DA, as in the case of Transport Allowance.
Analysis and Recommendations
The demands lack merit. The Commission is of the view that the present rates of the allowance are adequate. Accordingly, the status quo may be maintained. However, the allowance will go up by 25 percent each time DA rises by 50 percent.
Income Tax Exemption Limit on Conveyance Allowance
As per the Income Tax Act Section 10(14)(ii) and Rule 2BB, the Conveyance Allowance is allowed for the exemption of Rs. 1600 per month. The maximum limit of the IT exemption is Rs. 19,200 per year. Excess amount paid above the conveyance allowance limit is charged to tax under the head Income from Salaries. The exemption can be claimed by an individual salaried employee.
Hot Check: Expected DA from July 2020 Calculator
Special Exemption Cases: The Income Tax exemption limit for orthopedically handicapped and blind people is Rs. 3200 per month.
Implementation of the recommendation of the Seventh Central Pay Commission – Conveyance Allowance
Government of India
Ministry of Finance
Department of Expenditure
New Delhi, the 19th July 2017
Subject: Implementation of the recommendation of the Seventh Central Pay Commission- Conveyance Allowance.
Consequent upon the acceptance of the recommendation of the Seventh Central Pay Commission and in supersession of this Department OM No. 19039/2/2008-E.IV, dated 23rd September 2008 the President is pleased to revise the rates of Fixed Conveyance Allowance admissible under SR-25 to Central Government employees as indicated below:
|Average Monthly Travel on Official Duty||For Journey by Own Motor Car||For Journeys by other Modes of Conveyance|
2. These rates shall automatically increase by 25% whenever the Dearness Allowance payable on the revised pay structure goes up by 50%.
3. Conditions and provisions mentioned in SR 25 shall continue to apply
4. These orders will be effective from 1st July 2017
5. In so far as the staff serving in the. Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.
Hindi version is attached.
(Annie George Mathew)
Joint Secretary to the Government of India