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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2011 Should TDS be charged on the amount which is reimbursable ?
If not charged than should it be added to my income or not ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 June 2011 The Board has through Circular No.715 dated August 8,1995 clarified that since Section 194J refers to "any sum paid", reimbursement of actual expenses cannot be deducted from the bill and that such reimbursement will also have to be taken into account in deducting tax at source.

However, the issue of whether tax deduction will be attracted where such expenses are claimed through a separate statement stands unclarified by the Board.

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