Hello,
I have a doubt regarding travel reimbursement.
Can the travel reimbursement be credited to the salary account only or not?
Right now there is a practice of crediting the reimbursements to a separate account but it seems its more convenient to credit it to the salary account only.
kindly guide me with the correct practice to follow.
Thank you.
Regards,
Sowmya Hegde
From India, Bangalore
I have a doubt regarding travel reimbursement.
Can the travel reimbursement be credited to the salary account only or not?
Right now there is a practice of crediting the reimbursements to a separate account but it seems its more convenient to credit it to the salary account only.
kindly guide me with the correct practice to follow.
Thank you.
Regards,
Sowmya Hegde
From India, Bangalore
Hi Sowmya Travel reimbursement shall be paid by cash or shall be credited to any of His/Her account. There is no any restriction for that
From India, Bangalore
639From India, Bangalore
Thank you Jeevarathnam.
But there would be a conflict if the reimbursement is credited to the salary account. many employees say that it is taxable if credited to their salary account along with the salary. so they prefer to get the reimbursement credited to the other accounts.
Can you please suggest the general practice done in the majority of the companies now.
From India, Bangalore
But there would be a conflict if the reimbursement is credited to the salary account. many employees say that it is taxable if credited to their salary account along with the salary. so they prefer to get the reimbursement credited to the other accounts.
Can you please suggest the general practice done in the majority of the companies now.
From India, Bangalore
hello mam this not the income as well expense of the employee but i think it is the expense of the employer. many companies credit this amount in their a/cs.
From India, New Delhi
From India, New Delhi
Hi Sowmya
What the employees are claiming is correct. Even If the amount is credited to any account other account also IT may treat as Income for the employee. But the employee has to justify the same as it is just a reimbursement & not the income. IT department will not consider the deposits from salary account only. It will take all the money deposits from various accounts.
Else if you can pay by cast that is better.
From India, Bangalore
What the employees are claiming is correct. Even If the amount is credited to any account other account also IT may treat as Income for the employee. But the employee has to justify the same as it is just a reimbursement & not the income. IT department will not consider the deposits from salary account only. It will take all the money deposits from various accounts.
Else if you can pay by cast that is better.
From India, Bangalore
Hi all,In law and practice it is wrong to credit any such reimbursements to salary accountsBest regardsSameer Paranjape ,Advocate ( Labour Law Consultant ) Pune ,9850083760 Share knowledge ....... gain knowledge .......
From India, Pune
From India, Pune
Dear All,
The question raised by Sowmya is that whether the Reimbursements can be credited to Salary Account or not?
Here is a simple thing applicable is that if it is reimbursement, the amount is payable to the claimant in any source. i.e. by way of credit to his / her account or in cash. It is totally immaterial that the mode of payment. Only impact Ms.Sowmya should check that the amount received by her as reimbursement of exepnses is not included and shown in her taxable income.
In many of the companies. The amount payable to employee is credited only once at the time of salary by one single amount and that is shown in the salary slip / certifricate also.
It will be difficult to keep track to two different accounts i.e. Salary Account and Other Income.
As far as my knowledge there are no specific guidelines given for the mode of payment of exepnses incurrced by the employee.i.e. Cash/Bank/Salary Account/Other Bank Account.
Regards.
Ramakant
From India, Pune
The question raised by Sowmya is that whether the Reimbursements can be credited to Salary Account or not?
Here is a simple thing applicable is that if it is reimbursement, the amount is payable to the claimant in any source. i.e. by way of credit to his / her account or in cash. It is totally immaterial that the mode of payment. Only impact Ms.Sowmya should check that the amount received by her as reimbursement of exepnses is not included and shown in her taxable income.
In many of the companies. The amount payable to employee is credited only once at the time of salary by one single amount and that is shown in the salary slip / certifricate also.
It will be difficult to keep track to two different accounts i.e. Salary Account and Other Income.
As far as my knowledge there are no specific guidelines given for the mode of payment of exepnses incurrced by the employee.i.e. Cash/Bank/Salary Account/Other Bank Account.
Regards.
Ramakant
From India, Pune
Hi Soumya Ji,
Pls Find the link Below,May be it will help you.
Thanks
Bijay
https://www.citehr.com/461757-convey...orms-part.html
From India, Vadodara
Pls Find the link Below,May be it will help you.
Thanks
Bijay
https://www.citehr.com/461757-convey...orms-part.html
From India, Vadodara
As Seniors has already adviced, would like to add on few things for your information only
If 2 accounts are opened in the same name with the same PAN Card No. it can be traced all the entries affected through many banks for that particular PAN No,
Secondly the tax components for salary are been calculated by the employer and the TDS are deducted only for the Salary and not for the reimbursement. Employee is not directly liable for the Tax since it has to be deducted by the employer.
Hope this clarifies your query, if not please feel free to write, we will be glad to guide you further.
From India, Ahmadabad
If 2 accounts are opened in the same name with the same PAN Card No. it can be traced all the entries affected through many banks for that particular PAN No,
Secondly the tax components for salary are been calculated by the employer and the TDS are deducted only for the Salary and not for the reimbursement. Employee is not directly liable for the Tax since it has to be deducted by the employer.
Hope this clarifies your query, if not please feel free to write, we will be glad to guide you further.
From India, Ahmadabad
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Expense and Travel Reimbursement-I SG.doc