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taxability of Conveyance Reimbursement by company

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(Querist)
20 December 2007 hi !
all

plz advise me on the following matter:

my company reimburse conveyance expenses of residence to factory every month.
whether it is taxable? and if yes under which section of I.TAX ACT and in which hand employee or employer?
rakesh kumar
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RAKESH KUMAR

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RAKESH KUMAR (Querist)
20 December 2007 please advise
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CA. Vineet Grover

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CA. Vineet Grover (Expert)
20 December 2007 hi rakesh,

if we treat the same as conveyance allowance, the same is exempt upto Rs.800p.m. The excess amount shall be taxed in the salary income in the hands of the employee.

if the same is treated as a re-imbursement of travelling expenses the same shall be considered under conveyance head and shall be subject to FBT taxed in the hands og the employer.

Rgds/

Vineet
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RAKESH KUMAR

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RAKESH KUMAR (Querist)
26 December 2007 hi
Vineet
actually i want to know what should i treat it, whether it is conveyance allowance or transport allowance?
Actually we are just reimburse it between residence to factory
please
regards
CA. rakesh kumar
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Devendra Mishra

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Devendra Mishra (Expert)
26 December 2007 Ya Rakesh,

I think it is reimbursemt and hence not taxable in your hand but I think FBT will Be payable by Company.
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