New Delhi, May 16 -- Many companies provide conveyance allowance as part of an employee's salary component to cover the travel expenses between home and workplace or for official duties. However, many people may not be aware that transport or conveyance allowance is taxable in the hands of the employee, subject to certain exemptions under the income tax rules.

In the previous years, it was tax-exempt up to certain limit for all employees. But after an amendment in 2018, travel allowance has become taxable. However, for specific employees, the transport allowance received is still exempted from tax up to a certain limit, which has been hiked under the new income tax rules and will be applicable for ITR filing in the financial year 2026-27...