Navigating Tax Rebates: How Do You Manage Fuel and Telephone Allowances for Non-Sales Staff?

Hi All, I need your views on the income tax treatment for fuel reimbursement and telephone allowance given to non-sales employees.

Understanding Income Tax Treatment for Allowances

As per my understanding:

1. Fuel reimbursement is provided for business purposes, and for a tax rebate on the bills submitted, the logbook of travel needs to be maintained.

2. If an employee is receiving fuel reimbursement, then they shall not be eligible to receive the standard tax rebate of conveyance allowance at 800 p.m.

3. Telephone allowance - The rebate of income tax is available subject to the submission of actual bills and is only applicable to business-related calls, not for personal calls made.

Seeking Suggestions

Can someone please suggest ways to reduce the overhead of maintaining a logbook for fuel reimbursement and how we can safely provide telephone reimbursement without the effort of marking business calls in each bill where tax rebates are provided?

Also, if any of you can share with me the details of other tax-free allowances and their treatment, that would be useful.

Regards,
Vibhanshu

What is the limit of petrol reimbursement in liters? What is the limit of telephone and mobile reimbursement per month? Please guide me.

Regards,
Pravin

Point No. 1 - Impose a Cap

Impose a cap.

Point No. 2 - Discontinuation of Monthly Amount

Yes, the monthly amount of ₹800 will be discontinued if the option at Point No. 1 is chosen.

Point No. 3 - Cap Based on Levels

Impose a cap based on the levels. You cannot monitor telephone usage.

Hi Pon, is there a maximum cap that can be set on fuel reimbursement provided for business purposes and for tax rebates on the bills submitted? The logbook of travel needs to be maintained. Please advise.

Cheers