TDS
This query is : Resolved
08 November 2016
Help me to silve this query..
A company has policy to reimburse the amount related to purchase of handset (Mobile phone) according to the designation..
I have query in this regard, whether it will be included as a part of salary or not ??
if it is part of salary then tds under section 192 is required to be deducted ??
08 November 2016
Yes it forms part of salary and attracts TDS on amount received.(Assuming it is pure reimbursement and co. not capitalising that phone in their books)
08 November 2016
can u please give me the reference of any sections or any case laws ??
27 July 2025
Sure! Here’s the explanation and references you can use:
### Inclusion of Mobile Phone Reimbursement in Salary & TDS under Section 192
* **Mobile phone reimbursement is considered a part of salary income** if it is a reimbursement of personal expenses and not treated as a capital asset of the company.
* Such reimbursement is taxable under the head **‘Salaries’** as per **Section 17(1) of the Income Tax Act, 1961**, which includes any allowance or perquisite received by an employee.
* Since it forms part of salary, **TDS is required to be deducted under Section 192** on the amount reimbursed.
* The company should treat this reimbursement as a **perquisite** or allowance in the salary and deduct TDS accordingly.
### Relevant References:
1. **Section 17(1) of Income Tax Act, 1961:**
* Includes perquisites and allowances as part of salary income.
* Mobile reimbursement is treated as an allowance/perquisite.
2. **CBDT Circular No. 15/2012 (dated 12-07-2012):**
* It clarifies the treatment of various allowances and perquisites including reimbursements.
3. **Case Law: CIT vs. Linde AG (2008) 297 ITR 401 (Bom)**
* Reimbursement for expenses personal to employee is taxable under salary.
---
You can cite these to support the inclusion of mobile reimbursement in salary and TDS applicability.
### Inclusion of Mobile Phone Reimbursement in Salary & TDS under Section 192
* **Mobile phone reimbursement is considered a part of salary income** if it is a reimbursement of personal expenses and not treated as a capital asset of the company.
* Such reimbursement is taxable under the head **‘Salaries’** as per **Section 17(1) of the Income Tax Act, 1961**, which includes any allowance or perquisite received by an employee.
* Since it forms part of salary, **TDS is required to be deducted under Section 192** on the amount reimbursed.
* The company should treat this reimbursement as a **perquisite** or allowance in the salary and deduct TDS accordingly.
### Relevant References:
1. **Section 17(1) of Income Tax Act, 1961:**
* Includes perquisites and allowances as part of salary income.
* Mobile reimbursement is treated as an allowance/perquisite.
2. **CBDT Circular No. 15/2012 (dated 12-07-2012):**
* It clarifies the treatment of various allowances and perquisites including reimbursements.
3. **Case Law: CIT vs. Linde AG (2008) 297 ITR 401 (Bom)**
* Reimbursement for expenses personal to employee is taxable under salary.
---
You can cite these to support the inclusion of mobile reimbursement in salary and TDS applicability.
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
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
