Reimbursement of expenses- employees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2011 Hi All,

Reimbursement of telephone bills,food bills for late stay,other expenses that the employee first incurs and then gets reimbursed for does that attracts TDS on salary or any other tax applicability for the same.

Can someone please answer this

Thanks in advance.

CA Navin Jain

CA Navin Jain (Expert)
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28 October 2011 tds and other tax liability are not arisen on the reimbursement of expenses to employees.

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CA Neha Jain

CA Neha Jain (Expert)
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28 October 2011 It may attract if employee is given the per diem allowance. the un-spent portion of the allowance will be taxed.

It is company's responsibility to deduct tax. You can save tax by producing the evidence that the whole amount has been spent

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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28 October 2011 in your case TDS not applicable. because its not a part of salary

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Yogesh Agarwal

Yogesh Agarwal (Expert)
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28 October 2011 No TDS should not be deducted from this amount..because the amount re-imbursed is not exceeding the actual incurrence of expenses... Relax...

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