Hi, can anyone clarify on this - For the reimbursa...
# compensation-and-benefits
h
Hi, can anyone clarify on this - For the reimbursable components of salary like LTA, Food allowance, Books & Periodicals, Petrol Allowance etc will get the benefit under new tax regime??
h
Hey, @Harshala Dhotre As per the new tax regime non of these are exempted from the tax & all the allowances will be calculated as their gross total income. Instead of adding an allowance for Food, Books & Periodicals, and Petrol to the salary you can give this amount to your employees as reimbursement in respect of the acceptable proof. Reimbursement is always tax-free and won't be calculated as their Gross Annual Income. For food, you can sponsor food for your employees.
h
@Harender Bisht Correct me if I am wrong, even if we pay it as reimbursement, it will comprise as part of their CTC right and it has more relevance to how we book that amount in the book of accounts, as salary or as an expense correct?
h
If you are paying any reimbursement, it won't be added to their CTC. You have to book this as an expense not a part of their CTC.
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@Harshala Dhotre You can DM me if you still have any queries.
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w
Anything paid to the employee will be considered as Cost to Company towards the employee
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