M Sairam (Semi Qualified CA) (421 Points)
09 July 2016Hi Everyone,
A is a salaried person. He recived petrol allowance at start of the month from his/her employeer for office work. this petrol allowance is taxable or not? for clarification,petrol allowance but not reimbursement because i know reimbursement is not taxable.
CA. KAPIL MITTAL
(Partner)
(68 Points)
Replied 10 July 2016
I disagree with Dinesh.Any kind of allowance is covered under the definition is taxable in terms of definition of Salary u/s 17 of the Income tax Act, 1961, except to the extent exempt u/s 10. In this regards, to the extent petrol allowance used in performance of ofiicial duties is exempt. See sec 10(14) with rule 2BB(1)(c). Also otherwise conveyance allowance for commuting between the office and residence is also exempt upto Rs. 1600 p.m in terms of section 10(14) read with rule 2BB(2). You can claim benefit in terms of said provisions.
CA. KAPIL MITTAL
(Partner)
(68 Points)
Replied 10 July 2016
I disagree with Dinesh.Any kind of allowance is covered under the definition is taxable in terms of definition of Salary u/s 17 of the Income tax Act, 1961, except to the extent exempt u/s 10. In this regards, to the extent petrol allowance used in performance of ofiicial duties is exempt. See sec 10(14) with rule 2BB(1)(c). Also otherwise conveyance allowance for commuting between the office and residence is also exempt upto Rs. 1600 p.m in terms of section 10(14) read with rule 2BB(2). You can claim benefit in terms of said provisions.
ramesh
(article assistant)
(37 Points)
Replied 15 July 2016
Petrol allowance received for personal purposeis taxable as it falls under the definition of salary.
CA Brijendra Tripathi
(Consultant)
(142 Points)
Replied 15 July 2016
Mr. ramesh,
Employers do not provide petrol allowance forpersonal purposes.
It will be exempt as it is in connection of discharge of official duties.
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