Our company follows a CTC structure where 20% of total CTC can be claimed by employees as tax free reimbursements by producing bills.
Can the reimbusements be claimed unlimited under the following heads (up to max 20% of CTC):
1) Driver salary (by producing salary paid receipt, car not owned by the company)
2) Petrol & Fuel reimbursement
3) Uniform expense reimbursement
My idea is that since nothing is paid by the company over CTC then there can't be any perquisite component. This CTC amount is also mentioned in the appointment letter given to employees.
I would request the expert panel to kindly throw some light regarding this and if possible with some real examples from companies in India.
Thank you all
