Inquiry Regarding Taxable Allowances and Proof Submission Requirements

sumanth-k1

Hi all,

Are meal allowance, travel allowance, telephone & internet allowance, and conveyance allowance fully taxable? As an employer, is it mandatory for us to collect all the necessary proofs from employees for submission? Please advise.

Thank you.

Madhu.T.K

These allowances are taxable but if these are paid as reimbursements then they will not be part of salary for tax purpose. You have to either collect actual bills or get declarations from the employees that the amounts have been spent.

sumanth-k1

Thank You Madhu for your valuable information.

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