Travel advance deduction from payroll

Hi

 

Can you please tell me if the Travel Advance (Buisiness Travel) which is recoverable from employee deducted from his payroll impacts the TDS.

Is it a good practice to deduct it from Payroll or should we ask Employee to issue a cheque in companies name to clear the advance.

e.g. MR Employee takes Travel Advance of INR 100,000 for oversease business travel, he spends INR 40,000 and balance INR 60,000 is recoverable from him. Should we deduct this from his current months payroll or should we ask him to issue a chq of 60,000 in favor of company?

 

Thanks in advance

Girish

 

Replies (1)

as he has the balance remaining with him, it shud be refunded back by the employee to the company.  However if he has used the money for himself and is not able to return the advance back, then it shud be deducted from his salary.

there would be no TDS impact if teh money is recovered from his salary, as there is not tax benefit available to teh employee on this type of deduction.

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