Conveyance allowance, also known as transport allowance, is an allowance paid by employers to their employees to compensate for their travel from residence to the workplace and back. Here are some key features of conveyance allowance:

• Purpose: Conveyance allowance is offered to compensate employees for their travel expenses from their residence to the workplace and back.

• Exemption: Conveyance allowance is exempt from tax up to a certain limit. The exemption limit varies depending on the employees salary and the amount of conveyance allowance received.

• Calculation: The amount of conveyance allowance paid to an employee is usually fixed by the employer and is based on factors such as the distance between the employees residence and workplace, the mode of transport used, and the prevailing fuel prices.

Overall, conveyance allowance is a type of allowance that helps employees cover their travel expenses to and from work, and it is exempt from tax up to a certain limit.