Reimbursement of Director/Employee Holiday expenditure

This query is : Resolved

keshav (Querist)
Follow

29 March 2023 Holiday expenses reimbursed to employee. Whether allowed/disallowed as expenditure to the company in IT Act even after same is considered as perquisite and taxed in the hands of employee?

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

05 April 2023 Under the Income Tax Act, expenses incurred by a company that are for the purpose of earning income are generally allowed as a deduction. However, the reimbursement of holiday expenses to an employee may be disallowed as a deduction if it is considered to be an expense incurred for the personal benefit of the employee and not for the purpose of earning income.

Additionally, if the reimbursement of holiday expenses is considered a perquisite and taxed in the hands of the employee, the company may not be able to claim a deduction for the same amount as an expense.

It is important to note that the tax treatment of reimbursement of holiday expenses can vary depending on the specific circumstances and the nature of the expense. It is advisable to seek guidance from a qualified tax professional to determine the appropriate treatment of such expenses for your particular situation.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

REGIWISE CONSULTANTS PVT LTD

Arvind Sharma

Raj Jaggi

tpksathyan narayanan

R.Prashanth

Subscribe Now

Reimbursement of Director/Employee Holiday expenditure

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA