Hi everyone - I wanted to confirm whether the company needs to be any taxes on employee reimbursements? What if an employee chooses to pay for a software subscription such as Canva, Notion etc and claim it as a reimbursement from the company, would the company be liable to pay taxes on those reimbursements as well? Apparently different CS firms have been sharing conflicting thoughts on this.

@Sivananda Reddy can help

Hi Kashish, reimbursements backed with valid bills are not taxable in the hands of the employee.

Expenses paid on behalf of the company and claimed as reimbursements with valid bills/invoices/receipts are not taxable in the hands of the employee.

Thanks for the above responses 🙏

Is there a cap on this amount, and are there any types of reimbursements covered here?