Reimbursement of hotel stay for family

Dear Friends

Recently on successfully getting its first order,Management of my company offered to reimbursed Two nights and three days stays in two star hotel with family for all the employees. They can avail this facility at any time ie even after march 10.

My querry is, what will be its tax applicability in the hand of employee/employers, I further clear that the compnay has its regular LTA component in its salary structure paying on monthly basis.

A prompt response will be highly appreciable.

regads

kumar narendra

Replies (1)

Dear Narendra Kumar,

Employer will get the deduction of the amount reimbursed to employees.

Further the Fixed component of LTA which is given on monthly basis is taxable in the hands of employees.

LTA can be claimed as exempt(to the extent specified) only in respect of 2 journies in a block of 4 years. 

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