LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Fuel Allowance

SSNarayana (Partner) (46 Points)

05 December 2008

Good Day

Our Company has been paying a fixed fuel allowance to the employees every month which forms part of the salary structure.

Is this fuel allowance taxable in the hands of the employee? is there any other way of tax palnning relating to this.

Can anybody help with this.

regards

Reply
Follow
Share

3 Replies

Jitendra Mehta (Service) (48 Points)
Replied 08 December 2008

Dear Sai, any amount which is paid Fixed and in the form of Allowance, is subject to tax in the hands of the employee, however, if it is paid as a reimbursement against actual expenses duly supported by bills, then it's not subject to tax.

CA Sunny Sharma (Service) (234 Points)
Replied 08 December 2008

In my opinion if name is changed to Transport allowance then employees can claim a deduction of Rs. 800 pm, does not matter they produce biils or not.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 08 December 2008

i will suggest that u can show it as reimbursement and ask employees to submit the bills against them.......in this case this will not be taxable in the hands of the employee but FBT willbe applicable and u can deduct FBT amount from employees salary and in this way u can save tax for the employee

If im wrong ..pls let me know