Conveyance allowanceis given to employees to meet travel expenses from residence to work. The conveyance allowance for up to Rs.9,600 per annum is exempt from tax. Starting FY 2015-16, this limit has been increased to Rs.19,200 per annum. Leave Travel Allowance: Salaried employees can avail...
The fundamental change is the limit on the allowances set by the new rules. All allowances put together should not exceed more than 50% of the salary package. This in turn will impact the calculation of Basic and PF components. An increase in basic salary will attract more tax. Increased ...