15 March 2012
IN A PHARMA CO., WE REIMBURS THE EXPS. PAID BY EMPLOYEE IN THE NAME OF "TRAVEL ALLOWANCE" WHICH AS FIXED @ PER KM ACCORDING TO DESIGNATION OF MEDICAL REPRESENTATIVE. ACTUALLY IT IS PAID FOR HIS TOUR,HOTEL AND LODGING EXPS. WHICH WE REFUND THEM . WE ADD THIS ALLOWANCE TO M.R. SALARY AND DEDUCT THE TDS. BUT EMPLOYEE SAYS THAT IT IS NOT PART OF HIS INCOME.
QUERY : SHOULD WE ADD THIS T.A. TO SALARY OF EMPLOYEE OR SHOW THIS EXPS. IN TRAVELLING AND TOUR EXPS.?
16 March 2012
It is not Travel Allowance(TA means Allowance paid to Employees to Travel From Residence to Office which is Taxable After giving Rs 800 as allowable Deduction) In your case It is paid for Office travel purpose hence it is a travelling and Tour Exp. hence It should not be considered for making TDS to employees.
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