seema (Associate Accounts Consultant) (122 Points)
06 March 2009Hi,
In Our firm we providing 1800/- Per month as Communication allowance. till now we giving the tax benefit upto bills ptovided for actual expenditure up to 1800/- but sum employees have trouble with as in in a month they used it as amounting Rs. 500 and 3000 for any other month they claim exemption for 3500/- but we provide only for 2300 (500+1800/-). can anybody tell me which one is correct method to calculate the exemption????
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 06 March 2009
Hi Seema
In case of reimbursement of bill , maximum limit Or Bill whichever is less is used for the payment yo employee.
As you told the method i.e. 500 + 1800 for two month os coorect way of accounting.
CAclubindia
