Hello, In my company we have a policy of reimbursing employees for their telephone bills. The company actually does not pay the remibursements but we submit bills for this near the end of the month for exempting this amount from the taxable income.
Recently my telephone bills exceeded the cap amount of INR 2,000 but i have all the legitimate bills for the same. However my company has informed me that I should submit expenses so that they do not exceed the cap of 2K or there will be a problem with the auditors. This would mean I will have to omit one of the bills reducing my telephone expenses to about INR 1,200.
My question is this - if I continue to submit bills that exceed 2K but get a reimbursement of 2K only, will this be a problem with the auditors?
CAclubindia
