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Former Member
Sep 23, 2011 at 11:56 AM

Issues in Conveyance Allowance amount in Exemption U/S 10


New issues rise Now....

For New (mid month) joinee at the first month Exemption U/S 10 is calculated based on the Conveyance Allowance amount *12 months (or no. of remaining months for financial yr end), but in my client income tax Exemption U/S 10 based on the actual salary (not earned salary) from the first month onwards.

For example :

Employee X,

Joined date 15.08.2011,

Conveyance Allowance = 800 INR. Earned Conveyance Allowance for 15 days = 400 INR.

While Start Payroll for the period 5th (August) 2011. The WT /130 Exemption U/S 10 = 3,200 (400*8). Based on this Conveyance Allowance The Exemption U/S 10 calculated, But I want to calculated the Exemption U/S 10 at first month (august 2011) based on follows,

August month earned Conveyance Allowance = 400 INR + Actual Conveyance Allowance per month =800*7 =5,600.

Exemption U/S 10 = 6,000 INR.

Please give me some solution

Thanks and regards

Mohan .V

Edited by: mohantamilan on Sep 23, 2011 5:27 PM