Payment of Reimbursement for AY 2020-21

#CAanswers From FY 2018-19, a standard deduction of INR 40,000in lieu of travel, medical expense reimbursement and other allowances has been proposed for salaried employees and pensioners. To claim this standard deduction, there is no need to submit medical bills to your employer.Thus you can reimburse the said amount to staff.

#CAanswers Standard deduction of Rs. 40000 was introduced in lieu of "Medical Allowances" and "Transport Allowances". For telephone expense and petrol expenses, you can reimburse to your employees. Thanks & Regards.

#CAanswers Standard deduction debarrs the employee to get deduction under salary for transport allowance and medical expenses.  Standard deduction of Rs. 40000 was introduced in lieu of "Medical Allowances" and "Transport Allowances". For employer, there is no restriction to reimburse. Further, in case of employee also, for telephone expense and petrol expenses, you can reimburse to your employees which he can get as deduction over and above 40000.  However, you can anyway reimburse over and above 40000 as restriction is on employee and not emppoyer. Thanks & Regards.

You may pay the petrol reimbursement or telephone reimbursement of expenditure, however the said reimbursement must be exclusively for the purpose of business or profession, over and above reimbursement of actual expenditure shall be taxable in the hands of employee.

#CAanswers 

Yes you can give reimbursement to employees over and above 40000( now 50000) 

#CAanswers Yes , you can pay Petrol(Transport Allowance) and telephone reimbursement over and above standard deduction of RS 40,000. However , any amount paid above Rs 40,000 will be fully taxable i.e. (Amount paid - 40000)will be taxed fully subject to other deductions as applicable.

#CAanswers Yes , you can pay Petrol(Transport Allowance) and telephone reimbursement over and above standard deduction of RS 40,000. However , any amount paid above Rs 40,000 will be fully taxable i.e. (Amount paid - 40000)will be taxed fully subject to other deductions as applicable.

#CAanswers Yes , you can pay Petrol(Transport Allowance) and telephone reimbursement over and above standard deduction of RS 40,000. However , any amount paid above Rs 40,000 will be fully taxable i.e. (Amount paid - 40000)will be taxed fully subject to other deductions as applicable.

#CAanswer yes, You can submit the bills for reimbursement of #Telephone bills and #Petrol expenses exceeding standard deduction of rs 40,000/- but only used for the official purpose . otherwise it is taxable in the hands of employees.

Yes you can reimburse petrol and telephone expenses if incurred for accomplishment of office duty. Standard deduction of 40,000 is only for Transport allowance i.e. Expenses paid for commuting between his residential place and office etc. and Medical allowance which has nothing to do with petrol and telephone expenses. If petrol expenses paid for the above purpose then you can reimburse only upto 40,000 (inclusive of medical allowance).

#CAanswers You can pay Petrol Expense Reimbursement to your Staff and Telephone Expense Reimbursement over and above the standard deduction of Rs. 40,000. However, the employee shall get deduction of Rs. 40000/- only.

 

Yep. you can give reembursment below 40,000(this year50,000)

Originally posted by : Tejas shah
	Can I pay Petrol Expense Reimbursement to my Staff and Telephone Expense Reimbursement over and above the standard deduction of Rs. 40,000/-? Pls guide, it's urgent.

 

in short its like for eg:

my employee salary is say 1,00,000/- a month
Basic- 30,000
HRA- 15,000
Petrol- 5,000
Phone- 5,000
Medical- 1,250
Special- 43,750/-

so total Petrol-60k p.a. Phone- 60k p.a. Medical- 15k p.a.--- so total p.a. comes to 1.35L p.a. maximum deduction i can show in Form-16 is Rs.50k balance 85K will become taxable right???