one of our known companies provide following benefits to its employees apart from salary
1.Relocation expense reimbursement
2.Zym reimbursement
3.Team lunch reimbursement
4.Covid vaccination reimbursement
5. Oximeter reimbursement etc
out above reimbursements, for many reimbursements employee as to pay tax ?
Does they above all reimbursements eligible as expense for the company ?
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Taxation Point ( company vs Employee)
Replies (9)
Quick Summary
Those reimbursements are not expense to company because tax authorities are giving you incentives.
Ok I got what your asking, those expenses will be borne by the company, and they get tax benefit where ever applicable. Ignore the above because, I thought about esic as an allowable deduction from salary.
These are all tax free perquisites.
As per my knowledge all these are like special allowances to that employee. and those will be taxable in the hands of employee.
if it is income to employee means an expense to company. company is very much eligible for deduction.
if it is income to employee means an expense to company. company is very much eligible for deduction.
What is the actual difference between perks vs Profit in lieu of salary vs allowance? and how they are charged to employee
Allowances are taxable subject to some of them .HRA SEC 10 (13A)
PERKS CAN BE TAXABLE OR NON TAXABLE DEPENDING UPON THE THE DESIGNATION OF AN EMPLOYEE.
PROFIT IN LIEU OF SALARY ARE DIFFERENT FROM PERKS AND ALLOWANCES.
PERKS CAN BE TAXABLE OR NON TAXABLE DEPENDING UPON THE THE DESIGNATION OF AN EMPLOYEE.
PROFIT IN LIEU OF SALARY ARE DIFFERENT FROM PERKS AND ALLOWANCES.
Allowance is like amount will be given to employee to expend on some expenses lime HRA, DA, Helper allowance etc...
perk means employer only give amenities to employee. here employer don't any amount.
profit in lieu of salary defined under IT Act. please refer.
perk means employer only give amenities to employee. here employer don't any amount.
profit in lieu of salary defined under IT Act. please refer.
What about employee reimbursements then ?
Agree with ramaraju
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