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
From India, New Delhi
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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
From India, New Delhi
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Hi Vibhanshu What is the limit of petrol reimbursement in litres ? what is the limit of telephone and mobile reimb limit per month ? please guide me? Pravin
From India, Mumbai
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From India, Mumbai
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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.
From India, Lucknow
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616Impose 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.
From India, Lucknow
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls