Presumptive taxation and out of pocket expensces

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2017 Benefit of Presumptive taxation is available for professional if gross professional receipt is less than 50 lakh.
Is out of pocket expenses are part of gross professional receipt ?
For example,
Say I am earning 45 lakh as professional fee and then I also incur other out of pocket expenses like air ticket/hotel/international travelling etc. This out of pocket expenses, I get reimbursed from client separately - say it is 8 lakh. No what should be the gross professional receipt in a year. it is 45 lakh or it is 45+8 = 53 lakh ?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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19 January 2017 In my opinion out of pocket expenses reimbursed from client separately are not professional receipts since they are merely reimbursements. But having said that it may be important to show these expenses separately on bill and also bills or vouchers wherever applicable must also be kept and maintained so as to answer any query that may arise.