tax on perquisits

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..  

 i accept amir's view

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

IT IS TAXABLE IN THE HANDS OF EMPLOYEE W.E.F. A.Y. 2010-11

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

Hi it is taxable in the hand of recepient