Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

SECTION 194T

Save Share

This query is : Resolved

Suresh S. Tejwani (Querist)
Follow

03 March 2026 If a partner incurs travelling expenses exceeding ₹20,000 for the purpose of the firm’s business and the firm subsequently reimburses the exact amount to the partner, whether the provisions of Section 194T of the Income-tax Act, 1961 are applicable on such reimbursement?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

03 March 2026 No, the provisions of Section 194T of the Income-tax Act, 1961, are not applicable to the reimbursement of travelling expenses to a partner.
Genuine reimbursements for actual business-related expenses incurred by a partner on behalf of the firm are specifically excluded from the ambit of this section.
To ensure this exemption is valid and the payment is not viewed as a disguised remuneration, the firm must maintain proper bills and documentation to justify the expense as a reimbursement for firm business.

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