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Archive for April, 2016

Taxability of Attire/Uniform Allowance

Rule 2BB of the Income Tax Rules specifies the allowances paid to employees which are not taxable. One of the allowances which is exempt from tax is what is commonly called Uniform Allowance. Rule 2BB exempts from income tax: any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for […]

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Taxability of fuel expense reimbursement to employees -Part II

In the previous post, we had a look at taxability of fuel expense reimbursement to employees for motor car provided by the employer. What about employee-owned car? Employee owns the car and the employer reimburses fuel expense to employee The monthly perquisite value is as follows. i) The car is used wholly and exclusively for official […]

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Taxability of fuel expense reimbursement to employees -Part I

Organizations use “Fuel Expense Reimbursement” as a pay component for tax saving, particularly for members of middle and senior management. The typical payroll treatment for the head of pay is as follows: Pay a certain sum of money as remuneration under the head each month. Seek petrol/diesel purchase receipts from employees. Provide full tax exemption […]

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