my company reimburse conveyance expenses of residence to factory every month. whether it is taxable? and if yes under which section of I.TAX ACT and in which hand employee or employer? rakesh kumar
if we treat the same as conveyance allowance, the same is exempt upto Rs.800p.m. The excess amount shall be taxed in the salary income in the hands of the employee.
if the same is treated as a re-imbursement of travelling expenses the same shall be considered under conveyance head and shall be subject to FBT taxed in the hands og the employer.
26 December 2007
hi Vineet actually i want to know what should i treat it, whether it is conveyance allowance or transport allowance? Actually we are just reimburse it between residence to factory please regards CA. rakesh kumar
CAclubindia
