Reimbursement to employees for cab, fuel and internet

This query is : Resolved 

24 April 2025 I want to know if company can pay employees fuel reimbursement and internet reimbursement as allowances outside of cost to company. What is maximum permissible amount that can be allowed as reimbursement to employees?
Can company reimburse employees cab or auto expenses instead of fuel reimbursement ?

27 April 2025 For Fuel: Reimburse actual expenses with logbooks. If paid as reimbursement for official trips (not a fixed allowance), it is tax-free under Section 10(14) (Rule 2BB) if supported by actual bills/logs.

For Internet: Pay against bills (or set a reasonable cap). Reimbursement of actual internet bills (with proof) is tax-free under Section 10(14). If given as a fixed allowance without bills, it is taxable.

For Cabs/Auto: Reimburse ride receipts or provide corporate cab services. If given as a fixed monthly allowance, it becomes taxable.



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

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries