Petrol reimbursement ceiling amount

HRIM 1
Viewed 1822

Sir,

Regarding Petrol reimbursement- To claim tax exemption, Is it like 21600/- (1800*120) for a year and employee shall furnish the bills worth this amount anytime within the financial year. Or upto 1800/- only every month... This question aroused when an employee submitted a bill for car maintenance worth Rs.4500/- for a month and he is asking to adjust the balance amt (4500-1800) with the coming month's reimbursement.

Thanks, HRIM

petrol-reimbursement car-reimbursement income-tax
1 Answers

Its 21600 per year maximum.

Most of the employer does carry forward extra claimed amount to coming months. Say if employee submitted Rs 5400 bills in April. He may not submit more bills in next two months and still get amount reimbursed as non taxable.

Pankaj Batra5212
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