taxation of Fuel & Maintenance reimbursement

4766 views

Save Share

Lalit Kedia

31 Points Posted on 22 May 2007

Our CTC policy has a provision to opt for reimbursement of Fuel & Maintenance of upto Rs. 1,00,000/- as a part of our compensation. the amount is re-imbursed on submission of actual bills. However, FBT of approx 4.6% is also debited to our CTC.

However, this reimbursement is not taxable. Can anyone guide me to the relevant part of Income Tax Act or Rule which exempt such re-imbursement from IT. In case it s covered as a part of "Valuation of Perquisite Rules", please upload a copy of the same on this site in the 'share your file' section.

Replies (2)

Rajesh Bajaj

158 Points Posted on 24 May 2007

Dear Sir Motor car Expenses (petrol, repairs, driver’s salary) paid by employer or reimbursed by employer (irrespective of whether car is owned by employer or employee) Not taxable in the hand s of employee and FBT is payable by the employer

sameer

service

24 Points Posted on 19 May 2009

hi,

is there a limit on the amt of fuel/driver sal reimbursement that can be reimbursed monthly and annually? Also, if a person is entitled to a monthly amt of for eg 15000 (180000 pa), can the amt to be claimed be greater than 15000 in a particular month such that annually it will add up to 180000 at the end of the fiscal.