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.
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