7th CPC Conveyance Allowance

Conveyance Allowance as per 7th Pay Commission

Conveyance Allowance is a term used for the amount paid to employees to compensate them for their daily travel. As per the 7th Pay Commission, the Conveyance Allowance for AY 2020-21 has been set at a fixed rate per month. For Central Government Employees, the Income Tax Exemption Limit for Conveyance Allowance is Rs. 1600 per month. This means that employees can claim a deduction on their income tax returns for the amount spent on daily travel up to Rs. 1600 per month.

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:

There are demands to fully index this allowance with DA, as in the case of Transport Allowance.

Conveyance Allowance – Revised Table for JCOs/OR

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.

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

F.No.19039/03/2017-E.IV
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 19th July 2017

OFFICE MEMORANDUM

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:

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.

sd/-
(Annie George Mathew)
Joint Secretary to the Government of India

Latest updates and orders about Conveyance Allowance

• 7th CPC Conveyance Allowance June 17, 2023
• 7th Central Pay Commission Conveyance Allowance Revised rates to Railway Medical Officers June 17, 2023
• Conveyance Allowance to Railway Employees as per 7th CPC June 17, 2023
• Conveyance Allowance to Railway Doctors after 7th Pay Commission June 17, 2023

• Entitlement of Mileage allowance and Conveyance Allowance during Lockdown Period

What is the 7th CPC Conveyance Allowance?

The 7th CPC Conveyance Allowance is a monthly travel allowance for journeys on official duty.

How much allowance is provided for journeys by own motor car?

For journeys up to 300 km, the allowance is ₹1680 per month. For journeys between 301-450 km, the allowance is ₹2520 per month. For journeys between 451-600 km, the allowance is ₹2980 per month. For journeys between 601-800 km, the allowance is ₹3646 per month. For journeys more than 800 km, the allowance is ₹4500 per month.

How much allowance is provided for journeys by other modes of conveyance?

For journeys up to 300 km, the allowance is ₹556 per month. For journeys between 301-450 km, the allowance is ₹720 per month. For journeys between 451-600 km, the allowance is ₹960 per month. For journeys between 601-800 km, the allowance is ₹1126 per month. For journeys more than 800 km, the allowance is ₹1276 per month.