Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

TAX EXEMPT REIMBURSEMENTS!

Salaried employees should plan to enjoy conveyance, telephone, entertainment & medical reimbursements!

Under Section 17(2) of the Income-tax Act read with Rule 3 of the Income-tax Rules, any reimbursement granted by an employer to his employee for telephone expenses (including a mobile phone), actually incurred by an employee is treated as an exempt perquisite (perk). It is pertinent to note that there is no monetary ceiling prescribed in regard to this reimbursement.

 TAX FREE MEDICAL REIMBURSEMENTS

            Under Section 17(2) of the Income-tax Act, reimbursement made by an employer of upto Rs.15,000 of medical expenses in a year, actually incurred by an employee on his medical treatment or the treatment of any member of his family, is treated as an exempt perk.  (more…)

Minus FBT Shock Pay Packets Rock!

Conveyance, Telephone, Entertainment & Medical Reimbursements Get Increasing Attention After FBT Abolition!

The notorious Fringe Benefit Tax (FBT) having been abolished with effect from 1st April, 2009, employers have started taking a fresh look at restructuring the pay packets of their employees to make them more tax friendly. (more…)

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