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.
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