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Divya Karthik (Querist)

08 May 2010 A pvt ltd company reimburses conveyances expenses of Rs.800 pm, medical expenses of Rs.15000 pa, uniform allowance of Rs.1000. Will these reimbursement be taxable in the hands of employees as perks for the Ay 2010-11 as FBT is abolished?Kindly help...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 May 2010
Coveyance allowance is covered u/s.10(14) so based on the bills submitted for offical purpose by the employee against conveyance will be exempted

Rs.800 is provided exemption for transpost allowance which the journey covering the home to office

Medical reimbursment is exempted Rs.15000 per annum

Uniform allowance also covered U/s,.10(14) up to the offical usgae exempted based on the bills submission

Divya Karthik

Divya Karthik (Querist)

11 May 2010 A u said, it is exempt from the employees point of view. But now as FBT has been abolished, what will be the treatment of such expenses for the company?I mean 2 ask, whether the company still have to pay tax on such perquisites?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 May 2010 Company no need to pay any tax on that. the taxability in the hands of employee only

Divya Karthik

Divya Karthik (Querist)

11 May 2010 So, the reimbursement expenses given by the company for medical, conveyance etc...will it be treated as company's expenses?and shown in P&L a/c for all the employees?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 May 2010 yes.it is company expenses only, debited to P&L a/c

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