Tax Free Allowance

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Hi,

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????

Replies (1)

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.


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