Tax Applicability

This query is : Resolved

narender (Querist)
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17 July 2009 Dear Friends....

a private limited company is reimburshing the transport expenses of employess (from residence to office )

is it taxable in the hands employess

as Transport allowance is 800 P.M from I.T

and they are reimburshing more than 3000 Rs. P.M (except Transport Allowance)

Abhishek Mohta

Abhishek Mohta (Expert)
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17 July 2009 Reimbursement of expenses is never an income in the hands of the receipient.

As the transport allowance is given to them separately then the deduction of the same will be claimed by the employee accordingly.

However if the reimbursement of the expenses is more than the actual expenses then the excess will be charged to tax.