What is Travelling Allowance?
It is an amount paid to employees for covering the expenses of a business trip. This amount may cover the costs of airplane tickets, hotel accommodations, meals, transport, and any other things. Traveling allowance may also include the expenses of employees for traveling from their place of residence to the office. Traveling allowance may also be referred to as transport allowance or conveyance allowance. The basic difference between those two terms is:
- Transport Allowance: Covers expenses of commuting between the workplace and the place of residence. This is mostly for handicapped people.
- Conveyance Allowance: Covers expenses of business trips which cover the transport, stay, etc. bound to the rules. This has limitations with respect to tax exemption.
According to the 7th CPC Travelling Allowance, Central Government Employees in pay level 5 or below qualify for allowance to travel by First Class, AC-III, AC chair car by train. Employees who are in the pay level of 6 or above are eligible for an allowance for traveling by air.
Characteristics of Travelling Allowance
- Allowance can be for business tips covering the expenses such as travel tickets, hotel bills, etc.
- Allowance can be for covering expenses of commuting from the place of residence to the place of work.
- These mostly are fixed amounts and do not depend upon the total bill, that is there is a restriction on how much costs will be covered.
- Generally, the expenses are certain percentages calculated from the base salary.
- If employees’ expenses are more, then they have to cover the extra costs on their own.
- The costs covered vary for a physically disabled person, generally, the remuneration is more.
TA and DA Full Form
TA and DA are two important components of an employee’s salary structure in many organizations. TA stands for Travelling Allowance and DA stands for Dearness Allowance. These allowances are provided to compensate for the additional expenses incurred by employees during travel or due to inflation. In this article, we will dive deep into the full forms of TA and DA and understand their significance in the world of employment. Whether you’re an employee or an employer, this information is crucial to know and understand, so read on to get a clear understanding of TA and DA.