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Tax free reimbursements

July 10, 2008
Salaried individuals often spend on aspects that might be indirectly linked to their employment such as you might be needed to be attired in a particular way to conduct your employment or you may be needed to read up on subject specific reference books.

Such expenses might not be specifically reimbursed by your employer but is part of your salary.

Here it would be advisable to identify all such heads of expenses incurred by you for reasons directly/indirectly associated with your employment.

Try to talk to your Company HR to restructure the salary in such a way that these reimbursements are given separately against bills submitted by you. This would enable you to get some tax free components included in your overall structure.

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