Internet bill for income tax saving

Tax queries 10156 views 9 replies

Hello Everyone,

My company pays me 1250/- per month as telephone allowance, but considering the digital era, most of my work happens over internet, as I work for US based firm. That said  I use a cable internet service provider. Can I claim the internet bills against my income tax exsumption program.

Please advise.

Thanks

Ram

Replies (9)

Ya you can claim

you can claim every expense which relates to busines 

but cant claim personal expense 

if internet bill comes in the name of business then u claim it 

you cant  claim if it is comes in the personal name 

It's my personal expense and not related to company. But there is an option to claim Personal telephone bills under IT exsumption. Then considering that can't I claim internet bills? 

personal expense cant be claim for business it is debited to capital a/c

Hi Samir,

Thanks for your attention.

I am an employee for a company, I am not a stakeholder. I am considering to claim that amount for saving my individual IT 

Thanks

Venkat

Telephone allowance is taxable, reimbursment of expenses is not.

However, it should be treated as the same by the company. If your company treats is as an allowance and adds it up in your salary while deducting TDS then you cannot claim any further deduction. This is because there is no scope of claiming such expense while filing ITR.

Thanks for the detailed note, and within my payslip, it is listed as telephone reimbursement. that said I could potentially claim the benefit of reducing my taxable income.  So can I claim my private broadband bills against this reimbursement? Please advise

The plain answer for you would be 'no'.

What matters for you is the tax treatment done by your company with respect to the telephone reimbursement. Does it treat this reimbursement as part of your salary and deducts TDS on it? If yes then there is not much you can do about it because no deduction is allowed from salary income(except professional tax). The only option for you is to ask your company as not to treat the reimbursement as part of your salary which anyways would be the correct thing to do.

Thank You for your detailed reply. That said I would need to submit bills, for them not to consider this telephone reimbursement a part of salary. I use a prepaid mobile sim for which I cannot get a statement/bill. And since I work for a US based firm mobile usage is minimal for me but where I am highly dependent on internet. Considering your answer I cannot claim the internet bill against telephone reimbursement.


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