Hi Pankaj, Would you please tell us if there is any limit on the maximum amount of exemption that can be claimed against these - Professional Development Allowance, Periodical Journals, Telephone Reimbursement and Internet Reimbursement? Also, for telephone and internet reimbursements, if we hold prepaid connections, then what kind of bills / receipts can be produced for getting the exemption?
1 Answers
As such there is no limit defined by income tax department as these are not standard exemptions/deductions but are reimbursed on actual basis.
But having said that these should have some reasonable limits based on position, function and total package. A CEO with 50-60 lakh package may have high limits whereas an engineer with 4-5 lakh package may have lower limits.
For prepaid connections, invoice from recharge shop or online recharge website showing number and name of account holder should be accepted.
That's really quick and a good one. Thanks again Pankaj.
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