TAX on Reimbursements( Urgent)
This query is : Resolved
22 January 2010
Our Company is based in hubli, We send employees to bangalore to our clients office where they work at their place , ours is service oriented chip designing company. We call the employees who work from our clients place in banaglore as ONSITE employees.We reimburse them monthly onsite reimbursements as follows:
Food- 3000 per month
Accomodation- 3000 per month
travel(local in bangalore) Rs 1500 Per month
This is paid irrespective they give bills . or actuals as per the bills but not exceding the above amount.
My question is .Whether the above reimbursements are taxable in the hands of employees. At present the same are added to their salary and taxed whcih i feel is wrong as they are not in nature of perks. Kindly clarify in details as per the IT act.
Food- 3000 per month
Accomodation- 3000 per month
travel(local in bangalore) Rs 1500 Per month
This is paid irrespective they give bills . or actuals as per the bills but not exceding the above amount.
My question is .Whether the above reimbursements are taxable in the hands of employees. At present the same are added to their salary and taxed whcih i feel is wrong as they are not in nature of perks. Kindly clarify in details as per the IT act.
22 January 2010
In case of travel exemption can be claimed u/s. 10(14) which is restricted to Rs.800 p.m. In case of accomodation employee can claim HRA exemption u/s. 10(13A). amount has to be worked out according to conditions in that section. Food allowance will be taxable according to me.
22 January 2010
Reimbursement of expenses incurred for offical purposes will not come under the pur-view of the TDS provisions and it is exempt from tax.
22 January 2010
Reimbursement of expenses incurred for offical purposes will not come under the pur-view of the TDS provisions and it is exempt from tax.
22 January 2010
if Offical purpose then t is not taxable
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
Unanswered Queries
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- LIC maturity claim whether taxable
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TDS AND ITR ISSUE
- GST Rate for Catering Services
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
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
