A person is getting momthly fixed amount of Petrol reimbursemnt which is the part of his salary and provide the petrol bills for the equivalent amount( or more) to avoid taxability.( assuming that the whole amount is spent on offical purposes) Now he is also getting reimbursemnet on actual basis as per the company's travel policy for using his vehicle for offical pruposes on the basis of Rs./KM
My querry is whether a person can avail the income tax exemption on both this scenerio?
13 November 2010
See, First one is being recived for home to office /back. This is not fully exempted. He will get the exemption as allowed as vehicle allowance.
Other one is paid to hime as TA for official duty. This is reimbursement of official exp. so it is fully exempted.
CAclubindia
