Taxability of allowances
This query is : Resolved
DHEERAJ KUMAR
(Querist)
04 January 2019
Sir
We are a Public Limited Company. Our Executive Director is paid Rs. 17000/- towards Flexi Allowance.
This Allowance is for reimbursing him expenses incurred on Hotel Lunch/Dinner with Business Associates. He submits bills and claims the amount. But Total Annual Reimbursement can not be more than 17000*12. But if he claims less in one month then he can claim more than 17000 in the next month but annual limit of 17000*12 can not be exceeded.
What about Taxability of this allowance. Basically this is reimbursement on production of bills. But in books it is mentioned as Flexi Allowance.
Same way he is paid Rs. 5000 per month towards Uniform Allowance. He submits the purchase bills of any clothes and gets reimbursement. In books it is mentioned as Director Uniform Allowance.
But actually he gets reimbursed on production of Bills.
Confirm its taxability also. He gets regular salary per month including above mentioned allowances.
We are a Public Limited Company. Our Executive Director is paid Rs. 17000/- towards Flexi Allowance.
This Allowance is for reimbursing him expenses incurred on Hotel Lunch/Dinner with Business Associates. He submits bills and claims the amount. But Total Annual Reimbursement can not be more than 17000*12. But if he claims less in one month then he can claim more than 17000 in the next month but annual limit of 17000*12 can not be exceeded.
What about Taxability of this allowance. Basically this is reimbursement on production of bills. But in books it is mentioned as Flexi Allowance.
Same way he is paid Rs. 5000 per month towards Uniform Allowance. He submits the purchase bills of any clothes and gets reimbursement. In books it is mentioned as Director Uniform Allowance.
But actually he gets reimbursed on production of Bills.
Confirm its taxability also. He gets regular salary per month including above mentioned allowances.
CA R SEETHARAMAN
(Expert)
05 January 2019
All the above allowances are taxable.
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