Petrol expense reimbursement

HRIM 1
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Sir,

One employee availed conveyance allowance exemption of Rs.800/- from April-December 2012. He bought a Car on January 2013, so he is asking for car expense reimbursement of 1800/- for Jan-Mar 2013, as we have that component in our salary break up. So shall i calculate conveyance exemption for Apr-Dec, and give car expense reimbursement for Jan-Mar.

petrol-reimbursement salary-components car-reimbursement conveyance-allowance tax-exemption
1 Answers

You can consider non-taxable conveyance allowance for Apr-Dec and then reimburse car expenses for Jan-March on producing actual bills and take that non-taxable.

There should not be any issue in it.

Pankaj Batra5212
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