As bank officials, we are eligible for reimbursement of petrol expenses on monthly basis from our bank as per our grade, and the number of ltrs as per eligibility (not on actual basis).The vehicle is owned by the employee and maintenance is also taken care by him/her. Please inform tax implications.
From India, Bangalore
From India, Bangalore
Dear all, Please clarify, whether the reimbursement of petrol expenses for vehicle owned and maintained by employee is taxable.
From India, Bangalore
From India, Bangalore
Dear Prasanna
As said by Mr. Pon, all the reimbursements are not considered for calculating the Income Tax because it will not an income. (Medical Reimbursement, Petrol Reimbursement, etc. which will be paid only on remittance of the bills)
From India, Kumbakonam
1166As said by Mr. Pon, all the reimbursements are not considered for calculating the Income Tax because it will not an income. (Medical Reimbursement, Petrol Reimbursement, etc. which will be paid only on remittance of the bills)
From India, Kumbakonam
All reimbursement after producing the bills are not taxable, some companies includes reimbursement as a part of CTC i.e cost to company - Telephone rem, uniform rem, medical, petrol etc
From India, Pune
From India, Pune
Pl. Note Reimbursement is always called against producing the expenses details and bills. In this case as conveyed, it is a fixed amount and not actual. Further
no bills are required to provided. In this case it is a Allowance and not Reimbursement. And hence it is taxable.
Employer may keep condition that the reimbursement upto certain limit even though the expenses bills are more than that.
Again If these expenses must be related for the business and not To & Fro Residence. If it is To & From Residence, in that case even though the Reimbursement it will be allowable only Rs. 800/- p.m. and not more than than.
Pramod Thakar
From India, Pune
no bills are required to provided. In this case it is a Allowance and not Reimbursement. And hence it is taxable.
Employer may keep condition that the reimbursement upto certain limit even though the expenses bills are more than that.
Again If these expenses must be related for the business and not To & Fro Residence. If it is To & From Residence, in that case even though the Reimbursement it will be allowable only Rs. 800/- p.m. and not more than than.
Pramod Thakar
From India, Pune
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Proposed Reimbursement of Petrol & Diesel Expenses Policy.doc
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf