Allowance Taxation

415 views 2 replies

CA Uday Kiran

Chartered Accountant

85 Points Joined May 2010

Company A reimburses expenses to its employees incurred on buying baggage, clothes, medicines etc on their first travel on projects outside their place of working. Is this amount taxable as perks under the income tax act.

Please advice.

Replies (2)

Devendra

Chartered Accountant

4780 Points Joined March 2009

I think so it should be taxable as Perquisites.

Regards,

Devendra

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

if the travel is related to job, then company will book it in travelling expenses, and exclude from salary, but if the travel is shifting related for change of place then it would be counted as component of salary and taxable.