Transport Allowance Receipt India — Rules, Formats & What's Taxable

What is Transport Allowance?

Transport allowance (also called conveyance allowance) is an amount paid by an employer to an employee to cover daily commuting costs between home and workplace. It is a standard salary component in most Indian employment agreements.

There are two types: a fixed monthly transport allowance built into the salary structure, and an actual expense reimbursement model where the employee submits transport receipts and is reimbursed for actual costs incurred.

Tax Rules for Transport Allowance (FY 2025-26)

After the Finance Act 2018, the standard transport allowance exemption (previously Rs. 1,600/month) was replaced by a flat Standard Deduction of Rs. 50,000 for salaried employees under the Old Tax Regime. See our guide on income tax slabs FY 2026-27 for the regime comparison. This means:

Note: Reimbursement of actual travel expenses (such as cab, auto, or public transport receipts submitted to employer) may be treated differently depending on employer policy and nature of travel (official duty vs. daily commute).

When Is a Transport Allowance Receipt Required?

Transport allowance receipts are required in these common scenarios:

Expense reimbursement claims
When your employer pays actual transport costs, you submit receipts for amounts spent on auto, cab, bus, or train travel for official work.
Vendor or contractor payments
If your business pays a transport vendor (cab service, logistics provider), a receipt documents the payment for accounts and GST compliance.
Daily wage and field worker records
For workers paid a conveyance component, a receipt can document that the payment was made — useful for audits.
Audit and compliance documentation
Companies with reimbursement-based transport policies require receipts as supporting documents for their books of accounts.

What a Transport Allowance Receipt Should Contain

A valid transport allowance payment receipt for business use in India should include:

• ✓Receipt number and date
• ✓Name of the payer (employee or company)
• ✓Name of the payee (transport vendor or worker)
• ✓Amount paid in figures and words
• ✓Purpose of payment (daily conveyance, official travel, transport service)
• ✓Mode of payment (cash, UPI, bank transfer)
• ✓UTR or transaction reference number for digital payments
• ✓Signature of the receiving party
• ✓Revenue stamp for cash payments above Rs. 5,000

Note: a transport / conveyance receipt for personal commute typically does not need landlord PAN, GSTIN, or TDS — those apply only when the journey was hired on a corporate name (e.g. company-arranged cab via a registered vendor). If your transaction does need PAN, see our Rule 114B PAN-collection guide.

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