Dear All, Can we give certain Sr. Employees a standard Conveyance allowance of 800 & then 1500/- as petrol reimbursement against bill? Will this create any issue or it is OK to give.
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If the ₹1500 is given against petrol bills, then I don't think it will be considered as taxable income. However, it's suggested to prepare a reimbursement slip apart from the salary slip where all the reimbursements (the amount paid against bills).
Arti
From India, Ahmadabad
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Arti
From India, Ahmadabad
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Dear All,
What I meant by incentive was that it will be an attraction to my seniors. Apart from the usual travel allowance, they will have the facility of reimbursing 1000 or 1500 Rs/month against proper petrol bills. This reimbursement will not be reflected in the salary slip but will be in separate reimbursement slips.
So, with my explanation and your answers, I will take it as a "Yes" that I can give a conveyance allowance which will be reflected in the salary slip, and petrol reimbursement will be in a separate slip and only payable against bills.
Thanks.
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What I meant by incentive was that it will be an attraction to my seniors. Apart from the usual travel allowance, they will have the facility of reimbursing 1000 or 1500 Rs/month against proper petrol bills. This reimbursement will not be reflected in the salary slip but will be in separate reimbursement slips.
So, with my explanation and your answers, I will take it as a "Yes" that I can give a conveyance allowance which will be reflected in the salary slip, and petrol reimbursement will be in a separate slip and only payable against bills.
Thanks.
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respected sir, please give the proper procedure of settlement of t.a and d.a according to structure like top to bottom
From India
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From India
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The way you have explained, it is nothing but additional income to employees. You are paying Rs. 800 as an allowance and some more amount as Petrol Reimbursement. Hence, even though you are calling it reimbursement, it is nothing but an allowance, and it needs to be taxed.
Please consult your Tax Consultant before finalizing this arrangement. He may guide you to comply with the law by employing some strategies.
Petrol Reimbursement paid for commuting between home and office cannot be tax-free. You may present this as Reimbursement Of Petrol Expenses for official work like visiting vendors, suppliers, customers, etc. However, such Petrol Reimbursement Claims need to be supported by a statement containing date-wise details such as the place visited, kilometers traveled, purpose of the visit, etc. It cannot be a uniform fixed amount every month, as it will logically depend upon actual traveling.
Dear All,
What I meant by incentive was that it will be an attraction to my seniors that apart from the usual travel allowance, they have the facility of reimbursing Rs. 1000 or Rs. 1500 per month against proper petrol bills. This reimbursement will not be reflected in the salary slip but will be in separate reimbursement slips.
So, with my explanation and your answers, I will take it as a yes, that I can give a conveyance allowance that will reflect in the salary slip and petrol reimbursement, which will be in a separate slip and only payable against bills.
Thanks.
From India, Pune
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Please consult your Tax Consultant before finalizing this arrangement. He may guide you to comply with the law by employing some strategies.
Petrol Reimbursement paid for commuting between home and office cannot be tax-free. You may present this as Reimbursement Of Petrol Expenses for official work like visiting vendors, suppliers, customers, etc. However, such Petrol Reimbursement Claims need to be supported by a statement containing date-wise details such as the place visited, kilometers traveled, purpose of the visit, etc. It cannot be a uniform fixed amount every month, as it will logically depend upon actual traveling.
Dear All,
What I meant by incentive was that it will be an attraction to my seniors that apart from the usual travel allowance, they have the facility of reimbursing Rs. 1000 or Rs. 1500 per month against proper petrol bills. This reimbursement will not be reflected in the salary slip but will be in separate reimbursement slips.
So, with my explanation and your answers, I will take it as a yes, that I can give a conveyance allowance that will reflect in the salary slip and petrol reimbursement, which will be in a separate slip and only payable against bills.
Thanks.
From India, Pune
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As per Income Tax rules, payment of Rs. 800 per month as conveyance allowance with salary is exempted from Income Tax.
Employers can give any amount to employees as reimbursement, subject to certain conditions and company policies. However, if the amount is given as an allowance, it will be taxable.
Best wishes,
From India, New Delhi
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Employers can give any amount to employees as reimbursement, subject to certain conditions and company policies. However, if the amount is given as an allowance, it will be taxable.
Best wishes,
From India, New Delhi
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[QUOTE=hilmesh1611;1670163]Dear All,
Can we give certain senior employees a standard conveyance allowance of Rs 800 and then Rs 1500 as petrol reimbursement against bills? Will this create any issue, or is it okay to give.
Dear Hilmesh,
A conveyance allowance of Rs 800 per month is exempted from Income Tax. If your senior employee is entitled to a vehicle facility as per policy, you may reimburse petrol expenses. In that case, you should not pay the conveyance allowance. Both these reimbursements cannot be availed by an employee.
Chandrakant
From India, Mumbai
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Can we give certain senior employees a standard conveyance allowance of Rs 800 and then Rs 1500 as petrol reimbursement against bills? Will this create any issue, or is it okay to give.
Dear Hilmesh,
A conveyance allowance of Rs 800 per month is exempted from Income Tax. If your senior employee is entitled to a vehicle facility as per policy, you may reimburse petrol expenses. In that case, you should not pay the conveyance allowance. Both these reimbursements cannot be availed by an employee.
Chandrakant
From India, Mumbai
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I would like to ask under which section we can claim motor vehicle fuel and maintenance expenses. Can a person claim such exemption when the vehicle is registered in the name of his father, and the registered owner of the vehicle (the father in this case) is not claiming such exemption but is only claiming an exemption of Rs. 800 per month as conveyance?
Thank you in advance.
From India, Haldia
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Thank you in advance.
From India, Haldia
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(Fact Checked)-The claim for motor vehicle fuel and maintenance expenses can be made under Section 10(14) of the Income Tax Act, 1961. The ownership of the vehicle doesn't affect the claim if expenses are incurred for official purposes. The individual can claim the exemption even if the vehicle is registered in the father's name. Thank you for your query. (1 Acknowledge point)
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You may claim, and an employer may reimburse also, but it is not tax-exempt. It needs to be added to Taxable Income. In case any employer is not adding it to Taxable Income, then it is nothing but evasion of tax.
From India, Pune
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From India, Pune
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Sub - what is a ta in a salary . Does this ta include 1. Travel from residence to office 2. Travel from residence to office & other office requirement kindly advice rakesh kumar
From India, Kochi
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From India, Kochi
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(Fact Checked)-The term "TA" typically refers to Travel Allowance in a salary, covering travel expenses for work-related commutes. It can include both office commutes and other work-related travel. (1 Acknowledge point)
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(Fact Checked)-The user's reply is correct regarding the taxation implications of providing conveyance allowance and petrol reimbursement. However, it is essential to ensure that the petrol reimbursement is for official work and supported by proper documentation. (1 Acknowledge point)