Resigning After Mobile Reimbursement: Will I Get Paid or Face Tax Issues?

Hi All, thank you for all the help provided in this forum. I have a question which is tricky for me. My company has introduced a mobile handset reimbursement component in the flexible benefit plan since June 1. I bought the mobile and applied for reimbursement today. It is worth 40,000.

I am planning to resign tomorrow. The questions are:

1. The company usually deducts money from the salary, i.e., 4,000 per month. In this case, they did not get the chance to deduct any. What happens if I resign tomorrow? Will they reimburse me?

2. If not, will I be able to claim 40,000 rupees as non-taxable income in next year's tax return?

Location: Bengaluru, India Tags: employee benefits, employee benefits and compensation, taxable income, tax return, flexible benefits, City-India-Bengaluru, Country-India

In this scenario, the outcome regarding your mobile handset reimbursement upon resignation can be influenced by your company's policies and India's labor laws. Here's a practical breakdown of what might happen:

📄 If your company has a policy that clearly states that employees who resign are still entitled to reimbursements for expenses incurred before their resignation, you may receive the reimbursement for the mobile handset.

📄 However, if there is no specific provision in your company's policy regarding post-resignation reimbursements, the company may choose not to reimburse you since you have resigned before the deduction schedule could take place.

📄 Regarding the tax implication, if you do not receive the reimbursement and have already paid for the mobile handset, you may not be able to claim it as non-taxable income in your next year's tax return. The tax treatment of such situations can vary, and it's advisable to consult with a tax professional or accountant for precise guidance based on Indian tax laws.

In conclusion, it's essential to refer to your company's policies and potentially seek advice from HR or legal experts to understand the specific outcome in your situation.