Employers provide transport & conveyance allowances to offset commuting costs.
Conveyance allowance targets daily work commutes, while transport allowance covers broader transportation expenses.
Exemptions exist under Section 10(14) of the Income Tax Act.
Transport allowance exemption stands at INR 1,600 per month.
Physically challenged individuals receive a higher exemption of INR 3,200 per month.
Standard deduction adjustments replaced transport allowances from FY 2019-20 onwards.
Conveyance allowance exemptions are based on actual expenses incurred for official duties.
New tax regime allows for tax-exempt allowances like Travel Expenses, Daily Allowance, and Conveyance Allowance.