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.
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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?
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