IT Act for Internet Expenses

Sej2411 16
Viewed 986

Hi Pankaj,

As I understand from your Tax calculator, that Internet expenses are non-taxable. My company gives this component as reimbursement against bills (on employee name); but it is TAXABLE. Can you please point me to the IT Act, so that I can rightly point them to the act and ask them not to TAX.

Thanks in advance...

non-taxable internet-expense income-tax
1 Answers

There is no as such IT act/rule which says that internet expenses are non-taxable.

Generally companies don't show this amount into employee's salary and reimburse it separately on producing expense bills. Its treated like employee used internet for work and company is paying them for official work. Company add these bills to their business expense.

Its same like sales people get their travel/hotel bills reimbursed while they are traveling for company meetings.

Pankaj Batra5212
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