Amir
(Learner)
(4016 Points)
Replied 26 December 2009
Hi Sneha, Simple MANTRA to identify whether any perquisite is taxable or not is "THERE HAVE TO HAVE AN ELEMENT OF PERSONAL BENEFIT TO EMPLOYEES APART FROM OFFICIAL PURPOSES".
So if fixed reimbursements are for official purposes only then in that case it is not a taxable perquisit..
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 26 December 2009
Reimbursement of Car or fuel expenditure as well as entertainment expenses are not liable to tax as such expenditure are treated to be incurred for official purpose and if any amount paid on fixed monthly basis are liable to tax as perquisites. still hv any query, do reply.
regards,
ratan
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 26 December 2009
IT IS TAXABLE IN THE HANDS OF EMPLOYEE W.E.F. A.Y. 2010-11
M S GOPALAKRISHNAN
(employed)
(26 Points)
Replied 26 December 2009
Hi Sneha, If the same is paid as an allowance along with the monthly salary then it will be Taxable. But if it is paid as a reimbursement against submission of original bills and is meant for official purpose then it is not taxable
Saurabh Sharma
(Taxation)
(226 Points)
Replied 26 December 2009
Hi it is taxable in the hand of recepient
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
