For salaried individuals, the conveyance allowance or transport allowance is exempt from taxation up to Rs. 800 per month while he earns in India. For physically handicapped persons, this limit is Rs. 1600 per month. This exemption is provided without furnishing any bills.
If one has a car and uses that to travel to the workplace, then a vehicle maintenance exemption can be claimed for the petrol/diesel cost and vehicle maintenance expenses incurred. The exemption limit is Rs. 1200 per month if the engine capacity is less than 1600 c.c. and Rs. 1600 per month if the engine capacity is greater than 1600 c.c. If you are keeping a driver, an additional exemption of Rs. 600 per month is also available. Please note that when you claim the vehicle maintenance exemption, the conveyance allowance exemption is not available.
Some companies have different components included in the Cost To Company of their employees through which fuel bills, driver wages etc. can be reimbursed and is considered as an expense, hence exempted from taxation. You may check with the finance department of your company to find out the options available to you regarding this.