I am getting a Transport Allowance through my salary. I am daily going to office by own vehicle. Can i claim conveyance allowance tax exemption while filing of Income Tax. Please clarify.

Ans: No, you cannot claim both Transport Allowance and Conveyance Allowance as tax exemptions. Transport Allowance is an allowance paid by an employer to an employee to meet the cost of commuting between his/her residence and the place of work. It is a taxable allowance for employees.

On the other hand, Conveyance Allowance is given to employees to meet their travel expenses incurred in the performance of their duties. Conveyance Allowance can be claimed as a tax exemption under certain conditions, but it cannot be claimed along with Transport Allowance.

If you are using your own vehicle to commute to work, you can claim Conveyance Allowance as a tax exemption. However, the exemption is limited to Rs. 1,600 per month or actual conveyance allowance received, whichever is lower.