TDS on reimbursement

No.

Dear Dilip,

Reimbursement of transport charges does not attract TDS.The logic is that the person to whom you are reimbursing the expense may in turn pay it to different people and they may not cross the TDS limit.

TDS APPLIES TO INCOME  OR ASSUMED INCOME ....REIMBURSEMENT OF EXPENSES IS PAYMENT TOWARDS EXPENDITURE ALREADY INCURRED ,WHICH IS AS PER ACTUAL EXPENDITURE  HENCE THE VERY CONCEPT OF INCOME , REAL OR ASSUMED IS NOT THERE ,THEREFORE THE PROVISIONS OF TAX DEDUCTED AT SOURCE SO FAR REIMBURSEMENT OF TRANSPORT EXPENSES IS CONCERNED IS  NOT ATTRACTED.

SANJAY