T-Bill 364
This query is : Resolved
anil kumar
(Querist)
18 January 2011
My company provide the differed allowance to the employees, ( three year ) after when we will pay -
is it taxable in salary or not
is it taxable in salary or not
NITIN SHARMA
(Expert)
20 January 2011
Please make clear the nature and purpose of all allowances.
anil kumar
(Querist)
20 January 2011
Dear Sir,
in our company, provide to employees a defferred allowance ( training at abroad - {france}-expenses - and rembursed after 3 year ) company provide 1400 Euro - ( Minus )Current Salary. & after Their is no proof for Expenses. ( company pay all the expenses for training at abroad, like as travelling, loadging, food, etc )
if your not understood pls contact 09805535504
Regards,
Anil
waiting your response
in our company, provide to employees a defferred allowance ( training at abroad - {france}-expenses - and rembursed after 3 year ) company provide 1400 Euro - ( Minus )Current Salary. & after Their is no proof for Expenses. ( company pay all the expenses for training at abroad, like as travelling, loadging, food, etc )
if your not understood pls contact 09805535504
Regards,
Anil
waiting your response
anil kumar
(Querist)
20 January 2011
Dear Mr. Nitin Sharma,
if you don't mind i hava lot of question about service tax ? but there was no person to help these things, so pls help me about this ?
my e-mail - anihmr221@yahoo.co.in
anihmr221@rediffmail.com
anihmr221@inida.com
Mob- 09805535504
i shall be thankful to you
Regards,
Anil Sharma
if you don't mind i hava lot of question about service tax ? but there was no person to help these things, so pls help me about this ?
my e-mail - anihmr221@yahoo.co.in
anihmr221@rediffmail.com
anihmr221@inida.com
Mob- 09805535504
i shall be thankful to you
Regards,
Anil Sharma
26 July 2025
Regarding your question on the **deferred allowance** for training abroad reimbursed after 3 years:
### Taxability under Salary Income:
1. **Nature of Allowance:**
Since this allowance reimburses expenses incurred for training abroad (travel, lodging, food, etc.) and is paid later (deferred by 3 years), it is considered a **reimbursement** of expenses incurred for official purposes.
2. **Tax Treatment:**
* If the company reimburses **actual expenses supported by proofs**, it is generally **not taxable** as salary.
* But you mentioned there is **no proof for expenses** maintained, and company provides a fixed amount (1400 Euro) deducted from salary and reimbursed later.
3. **Without Proof of Expenses:**
* In absence of proof, the reimbursement might be treated as **perquisite or allowance** and added to taxable salary income.
* Especially if the amount is fixed and not linked to actual expenditure.
4. **Deferred Payment Impact:**
* The allowance/reimbursement is taxable in the year it is received or the year it is allowed as per the **Income Tax Act**.
* Since payment is deferred by 3 years, income is taxable when received (not when the training happened).
---
### Summary:
* If actual expenses are reimbursed with proof, **not taxable**.
* If fixed allowance without proof, **taxable as salary income** in the year of receipt.
---
If you want, I can help you draft a formal query for your tax consultant or provide references from the Income Tax Act for clarity. Would you like that?
### Taxability under Salary Income:
1. **Nature of Allowance:**
Since this allowance reimburses expenses incurred for training abroad (travel, lodging, food, etc.) and is paid later (deferred by 3 years), it is considered a **reimbursement** of expenses incurred for official purposes.
2. **Tax Treatment:**
* If the company reimburses **actual expenses supported by proofs**, it is generally **not taxable** as salary.
* But you mentioned there is **no proof for expenses** maintained, and company provides a fixed amount (1400 Euro) deducted from salary and reimbursed later.
3. **Without Proof of Expenses:**
* In absence of proof, the reimbursement might be treated as **perquisite or allowance** and added to taxable salary income.
* Especially if the amount is fixed and not linked to actual expenditure.
4. **Deferred Payment Impact:**
* The allowance/reimbursement is taxable in the year it is received or the year it is allowed as per the **Income Tax Act**.
* Since payment is deferred by 3 years, income is taxable when received (not when the training happened).
---
### Summary:
* If actual expenses are reimbursed with proof, **not taxable**.
* If fixed allowance without proof, **taxable as salary income** in the year of receipt.
---
If you want, I can help you draft a formal query for your tax consultant or provide references from the Income Tax Act for clarity. Would you like that?
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