Salary- reimbursement of telephone expenses
This query is : Resolved
17 April 2012
If employee is getting reimbursement of telephone bill and meal expenses from the employer, whether it is exempted or not? and if exempted under what provisions and ememption limit
18 April 2012
Reimbursement of Telephone expenses is exempt from Tax and Meal Expenses is exempt upto Rs. 50/- per Meal per day.
Message likes :
1 times
18 April 2012
Mr. Ravi Sir, Can u plz tell me that under what section/notification telephone expenses is expempted?
22 July 2025
Great question! Here’s the detailed answer on **telephone expenses reimbursement and meal expenses exemption**:
---
### 1. **Telephone expenses reimbursement**
* **Reimbursement of telephone expenses** provided by the employer to the employee **is exempt from tax** if it is a **reimbursement of actual expenses** incurred for official/business purposes.
* The exemption is covered under **Section 17(2) of the Income Tax Act**, which states that **any allowance or reimbursement for expenses incurred wholly, exclusively and necessarily for the performance of official duties is not treated as a perquisite or part of salary income.**
* If the employer provides a **mobile phone or telephone facility** for official use, the **reimbursement for the official part is exempt**; however, personal use portion may be taxable.
---
### 2. **Meal expenses**
* Meal expenses provided by employer are exempt **up to Rs. 50 per meal per day**, as per CBDT notifications and judicial precedents.
* This exemption is generally treated as a **perquisite** but exempt to this limit.
---
### 3. **Summary**
| Expense | Taxability | Relevant Section/Provision |
| ------------------------------- | -------------------------------- | ---------------------------------- |
| Telephone expense reimbursement | Fully exempt if for official use | Section 17(2), Income Tax Act |
| Meal expenses | Exempt up to Rs. 50 per meal | CBDT Circulars, Judicial decisions |
---
If you want, I can share specific circular references or landmark case laws related to these exemptions. Would you like that?
---
### 1. **Telephone expenses reimbursement**
* **Reimbursement of telephone expenses** provided by the employer to the employee **is exempt from tax** if it is a **reimbursement of actual expenses** incurred for official/business purposes.
* The exemption is covered under **Section 17(2) of the Income Tax Act**, which states that **any allowance or reimbursement for expenses incurred wholly, exclusively and necessarily for the performance of official duties is not treated as a perquisite or part of salary income.**
* If the employer provides a **mobile phone or telephone facility** for official use, the **reimbursement for the official part is exempt**; however, personal use portion may be taxable.
---
### 2. **Meal expenses**
* Meal expenses provided by employer are exempt **up to Rs. 50 per meal per day**, as per CBDT notifications and judicial precedents.
* This exemption is generally treated as a **perquisite** but exempt to this limit.
---
### 3. **Summary**
| Expense | Taxability | Relevant Section/Provision |
| ------------------------------- | -------------------------------- | ---------------------------------- |
| Telephone expense reimbursement | Fully exempt if for official use | Section 17(2), Income Tax Act |
| Meal expenses | Exempt up to Rs. 50 per meal | CBDT Circulars, Judicial decisions |
---
If you want, I can share specific circular references or landmark case laws related to these exemptions. Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
