Travel Allowance

Originally posted by : rahul khatter
	one thing i didnt clear frm all hw can allowances is called a perquisites..... to the ma knowledge ..... earlier travel allowance is exempt min. of following .. a.amount which is received b.amount which is spent but now all the travel allowance get to add in the salary .... thus forming the part of salary /// if anythng else thn plz reply

Actually rahul in the original question he was asking about Travel reimbursment but instead of using reimbursment the word used was allowance. Its not actually allowances but it was a kind of reimbursment on which FBT was applicable
 

hey all

im talking about the travel allowance only

it is debited by company as allowance in books of accounts

it is paid like a DA (daily allowance)

so is it taxable in hands of employess?

reply asap

Rishabh

Originally posted by : rishabh
	hey all im talking about the travel allowance only it is debited by company as allowance in books of accounts it is paid like a DA (daily allowance) so is it taxable in hands of employess? reply asap Rishabh

Dear Rishabh,

FBT was applicable on travel reimbursement and not on travel allowance.

If you are paying travel allowances as part of the salary then they will not be perquisites but will be normal allowances which are considered u/s 10(14) and amount will be taxable

Amout actually received less expenses for official duties.

Dear Friends

He is not talking about Travelling allowance which is part of salary, but in various company on travelling outside the home station fixed per day allowance is given (which is for meeting some extra expenses on account of out of home town), he terms it as Travelling allowance on which the previously FBT was applicable

I it is not taxable so far you claim it as spent for the purpose for which it was given (no proof is required). However if you deposit the same in your bank account or invest in other way which you claim as saving of amount from this travelling allowance then it is taxable.

hi bimal

thanks a lot for ur reply

sudhanshu thank you also

yes as per my understanding also it is taxable -- amount which is left with after meeting official expenses

thanks everyone

Rishabh