Fixed reimbursement

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2012 HI,

Suppose fixed reimbursement paid to employees in monthly salary so please clarify its taxable or exempted under salary income for Salary TDS.

Medical Rs.15000/- p.a
Dress 30,000/-P.a &
Food Rs.15000/-P.a

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

03 March 2012 Fixed allowance always taxable.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2012 suppose employee has submit vouchers against the same then it will be taxable.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 March 2012 If the expenses reimbursed based on producing of evidences i.e. vouchers,bills etc.... then it would be exempted subject to the limit. But fixed reimbursement of expenses means paying the fixed amount of expenses every month or year irrespective of the producing of bills so such type of expenses reimbursement is taxable. If you get the reimbursement of expenses based on the producing of bills then it would be exempted.
OM SAI SRI SAI JAI JAI SAI

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