Tax Free Allowance

You can give Rs.3500/- also becuase they used for only what purpose u given that is the matter u dont' care with month.

For Example: Employee going to attained the some communication course it will going for 3 months or more but they paid 100% full payment like Rs.3500/- in this case u can take for 2 months (i.e) 1800*2-100.becuase they utilised fully for the above said purpose only.

Hi Seema

In case of reimbursement of bill , maximum limit Or Bill whichever is less is used for the payment yo employee.

As you told the method i.e. 500 + 1800 for two month os coorect way of accounting.

Thanks Mr. Sorabh,

But can you tell if there is any ruling for that so i could convince these people.

Seema

Look , for accouting there is no ruling its only a subject matter of rule taht how a concern or comapny apply the rule .

It all depends on rule i.e. " Maximum limit of Rs 1800 Per month " OR " Rs. 21600 Yearly"

There is lot of difference on above specified rule. So lets discuss with your senior about ruling & as you required there is no act & ruling who defines about the way of accounting.