IT Act for Internet Expenses

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...

asked Feb 07 '13 at 10:40 by Sej2411 16349


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.

answered Feb 13 '13 at 02:35 by Pankaj Batra 5.2k320

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Asked: Feb 07 '13 at 10:40

Seen: 1,465 times

Last updated: Feb 13 '13 at 02:35