taxable allowance or not ?

It's Exempt Perquisite not taxable as Per Sec.17(2)

according to the definition of allowance given in Income tax act it is 100% Taxable it will be included in your salary

but according the the income tax rule if the telephone allawance is the perqisites than it will be exempt , that means it will not included in your salary

but the main problem is that practically how would you you recognize that it will be the perqiuisites or allawance for giving the exemption.

solution if it is inculded in the salary sheet that means it is allawnace and it will be taxable 100%  and if it is not in the salary sheet it is called perquisites and it shall be exempt

thanks

1.Reimbursement of mobile phone bills is not a taxable perquisite 

by virtue of proviso to Rule 3(7)(ix).

2. If the telephone allowance is for official purpose, exemption may be claimed u/s 10(14)

to the extent of amount spent for official purpose

3. Otherwise taxable.

Originally posted by : Pulkit Gupta

Telephone allowance is 100% taxable.

There is a diff. b/w allowance and perq.

Free telephone facility available is a diff. thing and a seperate telephone allowance in addition to salary is different.

That's my opinion. May be I am wrong.

It is taxable.

100% taxable .no doubt

defnately taxable. as the telephone allowance is given as a fixed allowance to employees irrespctive of its actual expenditure would be.

 

Regards,

 

Manoj

Its Taxable under head  Salary.

Originally posted by : Jyotsna

Telephone allowance is 100% taxable.

agree with pulkit ..so taxable in salary head..............

this is allowance so it is 100% taxable

whereas treatment of perq is different 
Dear deepak, Rule 3(7)(ix) specifically exclude the same, therefor the same is not taxable.

Yes it is 100% taxable because it is fixed allowance. if it is reimbursement or providing it is not taxable.

Do no term it as Allowance....

The better is to give as a reimbursement to the employee on show of the bill. So that wont be taxable to employee and now since FBT is not there company is also safe.

it's exempt... 

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