Click to play videoNew Delhi: Tax exemption on conveyance allowance has not been keeping up with the times. Thanks to a decade-old provision, the amount exempt is a pittance compared to the cost of travel today.
For most salaried persons, the exemption is to the tune of Rs 800 a month on conveyance allowance. But for daily commuters like Kaveri, who has to cross Delhi to get to work and back, the exemption is tantamount to nearly nothing.
Her actual travel costs work out to a minimum of Rs 4000 a month. The Rs 800-tax rebate on her allowance does not help her much.
“Even if I take the cheapest modes of transport, it have to spend at least Rs 170 a day and the tax exemption which had started about 9 to 10 years back is too little now,” explains Kaveri.
Kaveri’s case is not an isolated one – many fret under the monetary burden of daily travel. This shows that the government has not kept up with the times.
"When travel for office work is tax-free, why not make the expense on getting to office also free?” Kaveri wonders.
As cities expand and fuel prices threaten to soar, for salaried persons, a higher tax deduction on travel to work tops the wishlist this year.
“Mr FM, the current exemption is one-fourth of what we spend on travel. It's time you get real –either you give a full tax exemption or keep the change,” Kaveri says.
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