Tax treatment of telephone reimbursements

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Hello All,

Can anyone please confirm me whether the expenses on telephone/mobile actually incurred by employee and reimbursed by employer on submission of bills are taxable in hands of employees or not. If not, under which provision ?

thanks in advance.

CA Kishore Tallam

CA Kishore Tallam (Expert)
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05 April 2012 Telephone reimbursements by employer to employee is a perquisite and it is not taxable in the hands of the employee. i.e. taxable value is "0".

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 But sir can u please tell me the exact Rule where it is provided that telephone reimbursement are exempt from tax, as i m unable to find it in writing,

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 April 2012 Dear Mr. Kishore, telephone reimbursement is NOT a perquisite.

Telephone reimbursements are exempt u/s 10(14).

Section 10(14) provides that "any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, as may be prescribed, to the extent to which such expenses are actually incurred for that purpose.

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