Reimbursement of Expenses

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Nagendra HS

Nagendra HS (Querist)

22 June 2011 If company or other paid as a reimbursment of expenses is employee will attract Income Tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

22 June 2011 For getting reimbursement of expenses the employee can't be taxed as, what ever he has spent on behalf of others , is being only received by you. However, if he claims some thing extra, than what he really spent, that can be taxed.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

23 June 2011 It seems you have some "misconception of ground level" that is why you have repeated this question at ca club despite satisfactory answer given by the previous expert.

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First of all, you need to understand the meaning of the reimbursement.

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I raise one question before you :

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Suppose you made a railway ticket for me and didn't took any money from me because of friendship.

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( Friendship ka yahi to fayda hai ).

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Later on, whatever I pay to you ; can it be said as your income ?

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Have you earned something so that it should be taxed ?

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Please reply what you understood now.