Regarding reimbursement

This query is : Resolved

Rajnish (Querist)
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03 May 2010 Dear All,

Please take a note that, i just confirming regarding Reimbursement issued by company.

Company issued salary structure to employee details as below,

Basic Salary - 8,000/-
Conveyance Allowance 800/-
HRA - 4,000/-
Total Cheque Component - 12,800/-

Conveyance Reimb. - 2,000/-
Medical Reimb. - 1,250/-
Telephone Reimb. - 1,000/-
Total Reimb. Component - 4,250/-

From this year reimbursement component removed from salary structure or not?
Actually we have collected bills from employee against reimb. (this is correct way or not?)

I request you to please confirm,
Company issued reimb. to employee or not?

Regards
Rajnish

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 May 2010 1.Conveyance reimbursement exempted to extent of offical purpose against bills otherwise taxable

2.Medical reimbursment Rs.15000 per year exempted against the bills

Telephone reimbursment exempted to extent of offical usage against bills

Rajnish

Rajnish (Querist)
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04 May 2010 Dear Mr. Krishnan,

Thanks for your reply.
but i have one doubts regarding reimb.
- if employee using his bike/car from Office to Home and Home to Office then they claim Conveyance Reimb. agasint petrol bills?

- if employee usage telephone perosnally then they claim reimb.?

Please guide me.

Regards
Rajnish

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 May 2010 Conveyance for home to office and office to home is as defined in IT act is Tranport allowance(or what ever name called) is exempted up Rs.800 p.m balance is taxable (Ref:Circular : No. 764, dated 20-2-1998) the employee using telephone personally and getting reimbursement is fully taxable in the hands of employee

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