Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Taxablity on reimbursement part of salary

parvesh garg (Student CA / Articleship) (100 Points)

10 May 2016

Hii,

If an employer paid a part of salary in form reimbursement for personal expanses like (petrol) then whether it is taxable or not in income tax??

Reply
Follow
Share

4 Replies

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 10 May 2016

if it is given for personal exp. then it should be included in salaryamount.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 10 May 2016

Concur with Vinay!

s jain(CA Clubindia) (OFFICER) (35 Points)
Replied 10 May 2016

Even if the personal obligation is met by an employer, the question evil be whether it has to do some with job. e.g. if vehicle is run for office purpose, then tax on perk value of petrol exps. shall be borne by employer or alternatively employer can buy the vehicle in his name and pay the petrol charges and enjoy the depreciation also

s jain(CA Clubindia) (OFFICER) (35 Points)
Replied 10 May 2016

Taxability of reimbursement of personal expenditure to employee has to be examined on case to case basis unless otherwise a provision has been made under I.Tax act.