TDS

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Jitender (Querist)
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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 ??

Ganeshbabu K

Ganeshbabu K (Expert)
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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)

Jitender

Jitender (Querist)
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08 November 2016 can u please give me the reference of any sections or any case laws ??

Jitender

Jitender (Querist)
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08 November 2016 so that i can kept it as a documentary proof..

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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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.

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You can cite these to support the inclusion of mobile reimbursement in salary and TDS applicability.

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