Hi all,
If education fees for my child is reimbursed by the company in which I'm working, will that become part of my salary? or it will be taxable in the hands of Company?
7 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 08 June 2021
Yes, such reimbursement is taxable as perquisite in the hands of the employee (subject to exceeding the threshold limit) and an allowable business expense for the employer.
Mahaveer Kumar
(24 Points)
Replied 08 June 2021
@ cma poornima what is the threshold limit for such reimbursement?
CA ABHAY GUPTA
(Practice)
(3235 Points)
Replied 08 June 2021
There is no threshold limit, any amount of perqs received from employers are part of salary and taxable.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 08 June 2021
| Originally posted by : Mahaveer Kumar | ||
 |
@ cma poornima what is the threshold limit for such reimbursement? |  |
It is just 1k pm per child (as good as no exemption).
For more refer rule 3(5): https://www.incometaxindia.gov.in/pages/rules/income-tax-rules-1962.aspx
Sivaramaraju G
(Learner)
(2398 Points)
Replied 08 June 2021
Yes, as it is kind of allowance it is part of your salary income but you are eligible for exemption.
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