As bank officials, we are eligible for reimbursement of petrol expenses on a monthly basis from our bank as per our grade and the number of liters as per eligibility (not on an actual basis). The vehicle is owned by the employee, and maintenance is also taken care of by him/her. Please inform about tax implications.
From India, Bangalore
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From India, Bangalore
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Dear all, Please clarify, whether the reimbursement of petrol expenses for vehicle owned and maintained by employee is taxable.
From India, Bangalore
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From India, Bangalore
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As stated by Mr. Pon, not all reimbursements are considered when calculating Income Tax because they do not count as income. Examples include Medical Reimbursement, Petrol Reimbursement, etc., which are only paid upon submission of the bills.
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From India, Kumbakonam
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1189Regards,
From India, Kumbakonam
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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
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From India, Pune
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All reimbursements after producing the bills are not taxable. Some companies include reimbursements as a part of CTC, i.e., cost to the company - Telephone reimbursement, uniform reimbursement, medical, petrol, etc.
Reimbursement vs. Allowance
Please note: Reimbursement is always given against producing the expense details and bills. In this case, as conveyed, it is a fixed amount and not actual. Furthermore, no bills are required to be provided. In this case, it is an allowance and not reimbursement, and hence, it is taxable.
An employer may impose a condition that the reimbursement is up to a certain limit even though the expense bills exceed that limit.
Business-Related Expenses
Additionally, these expenses must be related to the business and not to and from residence. If they are related to travel to and from residence, in that case, even though it is considered reimbursement, it will only be allowable up to Rs. 800/- per month and not more.
Regards,
Pramod Thakar
From India, Pune
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Reimbursement vs. Allowance
Please note: Reimbursement is always given against producing the expense details and bills. In this case, as conveyed, it is a fixed amount and not actual. Furthermore, no bills are required to be provided. In this case, it is an allowance and not reimbursement, and hence, it is taxable.
An employer may impose a condition that the reimbursement is up to a certain limit even though the expense bills exceed that limit.
Business-Related Expenses
Additionally, these expenses must be related to the business and not to and from residence. If they are related to travel to and from residence, in that case, even though it is considered reimbursement, it will only be allowable up to Rs. 800/- per month and not more.
Regards,
Pramod Thakar
From India, Pune
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Professionl Tax challan (Employee).xls
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf